Commercial Farmers Union of Zimbabwe

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ZESA

Industry wants Zesa board fired

Industry wants Zesa board fired

http://www.dailynews.co.zw

By Taurai Mangudhla, Business Writer
Sunday, 18 March 2012 12:20

HARARE - State-owned power utility Zesa Holdings should dissolve its board 
of directors for failing to collect $500 million tariff arrears from 
consumers, Confederation of Zimbabwe Industries president Joseph Kanyekanye 
said yesterday.

He told the Daily News on Sunday the directors’ failure to cause management 
to perform one of the company’s key mandate was a sign of incompetence, 
which threatened industry’s performance as a result of erratic power supply.

“The problem with Zesa Holdings is that some people were not paying their 
bills deliberately while some cannot afford the money, but we should never 
have a situation where we have people not paying for their consumption 
because we won’t go forward,” he said.

“Addressing debt collection is what needs to be done now so government 
should look at a situation where it dissolves the whole board and appoint 
people who have a no-nonsense approach because a company can’t have its 
debtors’ book continuing to balloon in the face of such liquidity 
challenges,” added Kanyekanye, who is also Allied Timbers chief executive.

In its defence, the state-owned power utility last month said it had failed 
to collect overdue bills because the charges were out of the reach of 
consumers because of liquidity challenges and a general poor remuneration 
across the job market.

While creating a pool of prepaying customers is a solution, Kanyekanye said, 
the government should allow private players to import their electricity 
directly from suppliers to diffuse the potential threat caused by the 
company’s debts to regional power producers.

“I have also said Zesa Holdings should be abolished because of its cost 
structure which goes up to $40 million a year. It’s an albatross to the 
consumer and we should do away with it and maintain productive units only.”

Industry and Commerce minister Welshman Ncube also said the problems at Zesa 
Holdings were a result of mismanagement.

“The problems lies with the leadership of Zesa Holdings, how does one 
accumulate a $50 000 bill and they are not switched off,” he said.

“If people don’t pay then they should be switched off before it gets to that 
amount,” added the minister.

“Sadly, industry is the worst casualty because load-shedding can be managed 
at domestic level through use of gas, solar and other energy alternatives, 
but for an industry to use diesel powered generators it will cost them a lot 
and make their business uncompetitive.”

President Robert Mugabe and his allies in both government and Zanu PF are 
top the list of defaulters.

Mugabe’s bill, which amounted to $350 000 as at December 31 last year, was 
less than that of Manicaland governor Chris Mushowe and Central Intelligence 
Organistion boss Happyton Bonyongwe who owe the power company $367 606,07 
and $350 989,48 respectively.

Standard Comment: Zesa denials shield electricity looters

Standard Comment: Zesa denials shield electricity looters

http://www.thestandard.co.zw/

Zesa Holdings has always maintained a veil of secrecy around the accounts of 
politicians who are not paying their astronomical bills.
Hiding behind client confidentiality, Zesa is trying to sweep under the 
carpet a brewing scandal involving the politicians.

But it’s now a matter of public record that ministers, permanent 
secretaries, MPs and military strongmen who have vast properties and 
multiple farms have not been paying their power bills which amount to 
millions of dollars. This is a scandal of the same magnitude as the War 
Victim’s Compensation Fund which the same Zanu PF clique looted.

In a cynical move, Zesa has descended heavily on poor people groaning under 
the weight of prolonged periods of power rationing; their bills hardly ever 
exceed US$200 per month but have had their homes disconnected. The same 
vigilance apparently doesn’t apply to the ruling elite, who have accrued 
bills of up to US$400 000 for a single household.

These unscrupulous politicians should be ashamed of themselves for 
plundering the power utility that is saddled with a huge power import debt.
The scandal at Zesa is only a tip of the iceberg. Other parastatals like the 
Zimbabwe National Water Authority are also owed millions of dollars by the 
same politicians and their cronies.

Recently it was reported that the GMB had been looted by the selfsame 
coterie of maniacs who see themselves as divinely ordained to rule this 
country, and therefore have the right to do as they please.

This systematic looting of parastatals is so deep-rooted in Zimbabwe that it 
is bleeding the economy.  It is in this light that denials by Zesa that no 
big people owe the struggling parastatals anything becomes untrue and 
therefore unhelpful.

The denials only show that the organisation is led by a management that is 
keen to ingratiate itself with the political leadership while not concerned 
about the wellbeing of the power utility itself and the common people who 
pay their bills under very difficult conditions.

Politicians are people’s servants and therefore must be held accountable to 
them. The press has done the right thing by bringing them to public 
scrutiny.

Mangoma dates Mozambique

Mangoma dates Mozambique

http://www.dailynews.co.zw/

By Xolisani Ncube, Staff Writer
Friday, 16 March 2012 12:43

HARARE - Energy and Power Development minister Elton Mangoma has been jolted 
into action as large parts of the country face darkness over Mozambique’s 
decision to switch off Zimbabwe due to an unpaid debt.

Mangoma told the Daily News yesterday he would be travelling to Mozambique 
to discuss the matter, although there was no hint that Zimbabwe had the 
money to pay up.

He said Maputo’s decision to cut electricity supply will “certainly” affect 
most parts of the country as Mozambique was the only country that was still 
supplying power to Zimbabwe.

He said the debt by power utility Zesa Holdings (Zesa) would be dealt with 
by forcing consumers to pay their arrears with the firm as well as use 
political means.

“We will continue disconnecting power to people so that they can pay their 
dues as well as deal with the issue politically. I will be travelling to 
Maputo soon so that we can find a solution,” said Mangoma.

Mangoma said the way in which Hydro Cahora Bassa (HCB) cut off the power had 
no legal binding as it was supposed to give the country its quarter 
allocation of the paid debt.

“They are supplying only 25 megawatts, a quantity which is being produced by 
our Harare power station,” said Mangoma.

Zesa owes Mozambique’s Hydro Cahora Bassa (HCB) over $75 million for power 
exported to Zimbabwe.

The country’s power supply authority, Zesa was importing between 100 and 185 
Megawatts from (HCB), but it will only be receiving 25 megawatts forthwith.

The Energy minister had earlier told the Daily News that government had made 
arrangements to clear the debt but HCB would have none of that.

So far, three other regional countries have already terminated their 
assistance to Harare due to its poor track record of debt settlement.

Before the fallout with other countries, Harare used to get 35 percent of 
its total distributed power from Zambia, Democratic Republic of Congo and 
South Africa.

The national power supply authority on the other hand is battling to recover 
over $400 million it is owed by customers hence it has resorted to power 
disconnections.

The country requires 3500 megawatts but it could only supply 1400 megawatts, 
a feat which is likely to worsen the current crisis.

Mozambique denies cutting Zimbabwe power over debts

 

Mozambique denies cutting Zimbabwe power over debts



(AFP) – 6 hours ago

HARARE — Mozambique's Cahora Bassa dam on Thursday denied cutting power to 
Zimbabwe, which had claimed the state-owned company had pulled the plug over 
unpaid bills totalling around $75 million.

"Hydro Cahora Bassa switched off supplies to Zimbabwe on Thursday or Friday 
last week over the money owed which is around $75 million or $76 million," 
Energy and Power Development Minister Elton Mangoma told AFP.

"We are now switching off defaulters as part of efforts to raise the money," 
he said.

But the Cahora Bassa dam, which supplies nearly a fifth of the power it 
produces to Zimbabwe, said this was not the case.

"We would like to inform you that we have not cut electricity to Zimbabwe. 
That information is misinformed," Rosaque Guale, a board member of the 
state-owned Cahora Bassa Hydropower Company told AFP.

Several suburbs of the capital Harare have gone for days without 
electricity, while other places suffer up to 10 hours of power cuts, as the 
utility Zimbabwe Electricity Supply Authority (ZESA) comes under pressure to 
save power.

Zimbabwe needs 2,200 megawatts of electricity at peak but generates just 
1,300 megawatts and imports the remainder, including 100 to 185 megawatts 
from Hydro Cahora Bassa.

The dam produces 2,075 megawatts of energy a year. South Africa buys 65 
percent, while Zimbabwe gets a 19-percent share.

Last month, Mangoma warned a parliamentary committee that Zimbabwe risked 
being cut off if it failed to settle its debt with Hydro.

He said ZESA had accumulated almost a billion dollars in unpaid electricity 
imports, unserviced loans and outstanding contributions to a joint power 
project with neighbouring Zambia.

The firm also plans to introduce pre-paid meters to improve its revenue 
collection.

Last year ZESA announced it would hand out more than 5.5 million 
power-saving fluorescent light bulbs to households across the country to 
curb consumption.

 

Moz cuts power to Zimbabwe

Moz cuts power to Zimbabwe

http://www.iol.co.za

March 15 2012 at 02:27pm

Mozambique has cut off electricity supply to Zimbabwe over unpaid debts 
totalling $75 million, causing rolling power outages, Zimbabwe's energy 
minister said on Thursday.

“Hydro Cabora Bassa switched off supplies to Zimbabwe on Thursday or Friday 
last week over the money owed which is around $75 million or $76 million,” 
Energy and Power Development Minister Elton Mangoma told AFP.

“We are now switching off defaulters as part of efforts to raise the money,” 
he said.

Since Mozambique's Hydro cut off Zimbabwe, several suburbs of the capital 
Harare have gone for days without electricity, while other places suffer up 
to 10 hours of power cuts, as the utility Zimbabwe Electricity Supply 
Authority (ZESA) comes under pressure to save power.

Zimbabwe needs 2 200 megawatts of electricity at peak but generates just 1 
300 megawatts and imports the remainder, including 100 to 185 megawatts from 
Hydro Cahora Bassa.

Last month, Mangoma warned a parliamentary committee that Zimbabwe risked 
being cut off if it failed to settle its debt with Hydro.

He said ZESA had accumulated almost a billion dollars in unpaid electricity 
imports, unserviced loans and outstanding contributions to a joint power 
project with neighbouring Zambia.

The firm also plans to introduce pre-paid meters to improve its revenue 
collection.

Last year ZESA announced it would hand out more than 5.5 million 
power-saving fluorescent light bulbs to households across the country to 
curb consumption. - AFP

Chegutu man gets ten years in jail for reconnecting ZESA

Chegutu man gets ten years in jail for reconnecting ZESA

http://www.swradioafrica.com/

By Tererai Karimakwenda
07 March, 2012

The recent case of a Chegutu resident, hit with a ten-year jail sentence for 
reconnecting his electricity, has highlighted the desperation of many who 
are being disconnected by the power authority for non-payment of bills.

According to the state run Herald newspaper, Chegutu resident Obvious 
Muposiwa owed money to ZESA and was first disconnected on February 8th. He 
reconnected his electricity as soon as the technician left, but this re- 
connection was soon discovered.

A second worker was dispatched to remove the circuit breaker in an effort to 
ensure that Muposiwa got no power at all. But the desperate 31 year old 
reportedly used wires to connect directly to power supplies.

This time he was arrested and brought to court, where he was convicted of 
“destroying or interfering with ZESA equipment” and was hit with a ten year 
sentence by Chegutu magistrate Fabian Feshete.

The Combined Harare Residents Association (CHRA), who have been helping 
disconnected residents to negotiate payment plans with ZESA, described the 
sentence as “too harsh and too long” while also advising residents to avoid 
illegal connections because they are dangerous.

“We sympathize with all residents. We do not support them connecting 
themselves but we think a lesser sentence could have sent the message home,” 
explained CHRA coordinator Mfundo Mlilo, who added that Muposiwa’s case was 
“a sign of desperation”.

Online readers who commented on the harsh sentence given the Chegutu 
resident expressed shock and anger, criticizing ZESA for cutting off poor 
people why politicians and influential chefs got better treatment. Others 
accused ZESA workers of stealing cables without being punished and 
soliciting bribes from poor residents.

One reader wrote: “What about comrade Chombo? Has he settled his bill? And 
other big chefs who thought being ZANU masks you from any debt due? The jail 
sentence is too harsh. This offence deserves a 3-month term not 10 
years..that’s unbelievable.”

Another wrote: “ZESA employees using electricity for free yet there are 
being paid monthly salaries. ZESA should be sued for forcing communities to 
pay towards the repair of vandalized transformers by deliberately taking 
ages to repair them…”

Mlilo at CHRA said ZESA has been disconnecting residents despite the fact 
that they themselves have not been providing consistent power supplies. 
Asked what residents can do if they owe money, he advised that they 
negotiate a payment plan before electricity is disconnected, or in order to 
be reconnected.

“If the payment plans are not honoured we encourage residents to approach 
our offices or our local district coordinators,” Mlilo explained. He said 
ZESA has so far been honouring the payment plans and sparing many residents 
from disconnection. A few cases in Warren Park and Sunningdale were wrongly 
disconnected and CHRA mediated their reconnection.

Internet in Zimbabwe still affected by cable damage

Internet in Zimbabwe still affected by cable damage

http://www.swradioafrica.com

By Lance Guma
06 March 2012

Internet users in Zimbabwe, including Internet Service Providers (ISP’s) 
served by TelOne, are still getting slow and intermittent internet service, 
three weeks after two separate shipping accidents severed a crucial internet 
and phone link for the region.

In one of the accidents, a ship dragging its anchor off the coast of the 
Kenyan port city of Mombasa severed an undersea cable that cut off some nine 
African countries, including Zimbabwe. Repairs are still underway amid 
concerns it could take engineers up to a month to complete the work.

Another cable severed in two is known as EASSy and is owned by the West 
Indian Ocean Cable Company (WIOCC). The WIOCC is jointly owned by 14 major 
telecom operators in Africa, including Zimbabwe’s TelOne. Experts say 
Zimbabwe has been hardest hit by the accident which cut the cable.

SW Radio Africa correspondent Simon Muchemwa told us internet speeds during 
the day were now slow and many people were waiting to go online in the 
evening when speeds appeared faster. Technology website Tech Zim report that 
other internet providers, using alterative international cables, have not 
been affected.

Tech Zim quoted sources who said: “Liquid Telecom and PowerTel, the other 
two international bandwidth resellers in Zimbabwe, have not been affected by 
the EASSy outage or the increased load on SEACOM (another cable) due to 
traffic from the failed cables that’s been rerouted to it.”

The company responsible for the EASSy cable however is not happy with the 
press reports and believe the media are exaggerating the impact. The company 
said although the cable suffered a cut it only affected, “the section of 
cable between Port Sudan and Djibouti…and impact on customers has been 
minimal.”

But Information and Communication Technology (ICT) Minister Nelson Chamisa 
told SW Radio Africa that his ministry was inundated with complaints from 
people complaining about poor internet speeds: “I have instructed officials 
in my ministry to get in touch with those responsible to speedily resolve 
the problem.”

Electricity Supply and Service Delivery

Electricity Supply and Service Delivery

by the Hon. Minister of Energy and Power Development
Elton Mangoma

Preamble

The essence of this press conference is to acquaint you with the position of 
the electricity supply situation, service delivery by the power utility, 
setting the record straight on the disconnection of non-paying customers, 
position of electricity imports and the general relationship with suppliers 
of electricity imports.

There is a need for electricity consumers to pay for what they have consumed 
so that Zesa has capacity to increase electricity availability to all 
consumers. This is then done through more rigorous maintenance, increased 
imports and installation of new capacity.

It is very disheartening to note that there are still customers who have not 
paid at all since the advent of dollarisation in 2009, but yet these people 
still expect to benefit from uninterrupted power supplies, part of which is 
imported from the region.

This culture of non payment of bills will not be allowed to continue. I take 
this opportunity to thank and applaud those customers paying their bills.

Zesa has intensified efforts to collect outstanding bills. The programme is 
critical for sustaining operations i.e. carrying out maintenance, and 
supporting the importation of electricity. There are prospects for 
increasing imports from new stations being developed in the region.

Zesa is currently in discussions with the concerned developers and has to 
position itself as a credit worthy off taker to be able to tap from these 
sources. I therefore urge all our customers to pay their bills on time and 
to bring all their accounts up to date.

We have to come out of the vicious circle where because bills are not paid, 
supply reliability is compromised, and maintenance cannot be carried out and 
imports cannot be paid for. Payment of bills is very important as we take 
measures to build new power stations. We cannot raise funds to build new 
power stations when the current of non payment prevails.
Zesa has availed to customers a facility to propose workable plans, and 
regrettably some customers have chosen either to ignore this or not to 
honour their payment plans, leaving Zesa with no option except to withdraw 
supplies.

Disconnections of electricity

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has 
intensified credit control to all defaulting customers so as to encourage 
them to settle their outstanding amounts.

It is important to note that disconnection of electricity supplies should 
always be undertaken as a last resort action after non-payment of bills and 
failure to proffer credible payment plans.

Power connections are currently being applied wholesomely to ensure that all 
customer categories meet their obligation of paying for service rendered. 
ALL CUSTOMERS currently in arrears run the risk of disconnections. ZETDC is 
owed over US$450 million by customers, revenue that could be used to pay for 
electricity imports, purchasing of spares for infrastructural maintenance, 
fund for coal deliveries, among other areas for the good of the nation. 
However, disconnections in future will be done after providing a 
disconnection notice for a period of at least five days.

Accuracy of bills

It has come to my attention that some of the bills are not accurate and in 
some cases fraudulent. I have instructed Zesa to attend to all queries that 
the customers have so that they are satisfied with the accuracy of their 
bills. I have been assured that the bills do not include pre-dollarisation 
consumption. Those not clear should have their bills verified.

Reconnections

For the avoidance of doubt, this is the policy that Zesa is going to 
implement to address the debtors position.

To avoid disconnection, or for those who have been disconnected, so as to be 
reconnected: -

- A minimum down payment of 25 percent of the total bill has to be paid.
- Balance to be paid in an approved payment plan with Zesa for a period not 
exceeding six months.
- Any customer who breaches the payment plan will be disconnected 
immediately without further notice.
- Current bills to be paid in full.

As a ministry, we have taken a position that all defaulting customers will 
have their service withdrawn as an encouragement for them to pay up their 
bills. This policy will be applied to all customers fairly, without fear or 
favour. May I make it clear that the current disconnection exercise is not 
sparing anyone.

Customer service issues:

The ministry has received calls of poor customer relations by some staff 
members of the ZETDC wherein frontline are vindictive where disconnections 
are being done without due processes being followed and where some employees 
are conniving with customers to prejudice the power utility of its 
much-needed revenue, among other unbecoming behaviour. May I make it clear 
that such unbecoming behaviour and bad customer relations will lead to 
severe reprimand, including immediate dismissals, as such elements have no 
place in such a critical organisation to the socio-economic fabric of the 
nation.

HCB Debt:

Zesa Holdings has always enjoyed cordial relations with Hydro Cahorra Basa 
(HCB) for the provision of power imports. Plans have been put in place to 
ensure that Zesa conforms to an agreed payment plan. Currently the debt 
stands at about US$80 million, down from about US$100 million a few months 
ago. A further payment of US$40 million is planned for in the near future 
and arrangements for this are at an advanced stage. The HCB debt is to be 
serviced well if we are to avoid disconnection. A delegation of HCB is 
coming this Sunday for further negotiations with Zesa and we need to provide 
a concrete payment plan.

Prepaid metering:

ZETDC recently concluded contract negotiations with successful bidders on 
the prepaid metering project. The installation will be done by the meter 
suppliers and this strategy is to ensure that the roll out takes place 
within the shortest possible time and the plan is to have the meters 
installed over a period of 18 months. The meters being procured will put to 
rest the issue of customer complaints as regards billing bills perceived as 
huge, and allow customers to manage their consumption. Zesa has since 
exhausted the 10 000 prepaid meters it had in its inventory and is 
concluding negotiations with four suppliers of meters over installation.

Expansion projects (Batoka Gorge)

At the 29th ZRA Council of Ministers Meeting (COM) the issues regarding the 
ex-CAPCCO assets debt and the Batoka Hydro Power Project were discussed and 
concluded as follows:

Zambia accepted the payment of the principal debt amount of US$70.8 million 
by 31 March 2014. A Settlement Agreement for the ex-CAPCCO assets debt was 
signed by the two governments. The COM agreed that a Committee led by the 
Zambezi River Authority and including officials from the two ministries 
responsible for energy immediately start taking steps to implement the 
Batoka Gorge project. The ministry is setting up a project implementation of 
the Batoka Hydro Power Project. The first objective is to set up agreed 
timelines and terms for engaging Independent Power Producers to enable the 
Authority to call for expressions of interest or going to international 
tender as soon as possible. Batoka Gorge will produce 1600 to 2000 MW of 
power, 50 percent of which will be for Zimbabwe.

I thank you.


MDC Information & Publicity Department

Zesa mum on chefs’ electricity bills

Zesa mum on chefs’ electricity bills

http://www.dailynews.co.zw/

By Sharon Muguwu, Staff Writer
Monday, 20 February 2012 14:31

HARARE - State power utility Zesa Holdings has refused to explain its 
stratification that has seen cabinet ministers and other top government 
officials owing thousands of dollars in electricity bills exempt from 
disconnections.

There seems to be a conspiracy of silence between the relevant minister 
Elton Mangoma and Zesa Holdings as they are throwing the matter to each 
other.

Mangoma told a parliamentary portfolio committee on Mines and Energy last 
week that Zesa Holdings is moving to disconnect legislators that had 
defaulted on the power bills.

The threat prompted counter-accusations from the Mines and Energy committee 
chairman Edward Chindori-Chininga that the permanent secretary in the 
ministry of Energy and Power Development Justin Mupamhanga actually owed 
Zesa Holdings more than $30 000 and he was not switched off.

He further said Chris Mushohwe, the Manicaland governor owed well in excess 
of $100 000 but he was not switched off.

The disclosures provoked furious responses from Zesa Holdings’ ratepayers 
who protested the stratification of customers in terms of disconnections.

The revelations come at a time the company has been switching off ordinary 
people for bills as low as $50.

Fullard Gwasira, the company spokesperson declined to comment on the matter.

“On that issue, I have nothing to say. You will have to talk to the minister 
of Energy as he knows what will be done,” he said.

The minister was also tongue-tied when asked by Chindori-Chininga why the 
chefs were being exempt from the disconnections.

Ruvimbo Moyo, a Harare ratepayer expressed disgust at the disclosures.

“It is really unfair what these people are doing,” she quipped. “Last year I 
owed Zesa (Holdings) $70 which I had been trying to clear since 
dollarisation and they switched me off.

“I was appalled when I learnt that these top officials owe Zesa that much. 
It is just unfair and all of them have backup generators at their homes. 
Honestly how does a bill run up to $30 000 and Zesa do nothing about it?”

The ordinary residents have had to contend with rolling power outages and 
estimated bills.

At the beginning of this month, Mozambique’s Hydro Cabora Bassa threatened 
to stop supplies to Zimbabwe over a mounting debts estimated at $94 million 
for electricity imports.

Zesa Holdings owes about $800 million in legacy debts, but Mangoma said the 
utility does not have money to settle the bill.

Essar Africa To End Zim’s Electricity Woes

Essar Africa To End Zim’s Electricity Woes

http://www.radiovop.com/

Bulawayo, February 18, 2012- Essar Africa Holdings Limited (EAHL), an Indian 
steel making company has applied to the government to construct and operate 
a 600 Megawatt (MW) station to generate and supply electricity across the 
Zimbabwe.

According to a notice by the Zimbabwe Energy Regulatory Authority (ZERA), 
the proposed electricity generation station by EAHL will be situated in the 
Sinamatela area, about 2kilometres from the Hwange airstrip.

EAHL is a subsidiary of subsidiary of the Indian based Essar Group that 
snatched 60 percent shareholding in the ailing Zimbabwe Iron and Steel 
Company (ZISCO) that amounts to 53 percent stake-in a partnership deal that 
seeks to revive operations at the steel company.

“Notice is hereby given that the ZERA has received an application from Essar 
Africa Holdings Limited (EAHL) to construct, own, operate and maintain a 600 
MW generation station for the purpose of generation and supply of 
electricity in Zimbabwe.

“This is in terms of the provisions of the Electricity Act (Chapter 13; 19) 
of 2002 section 40 as read with statutory instrument 103 of 2008 
(Electricity Licensing Regulations),” a notice by the ZERA reads in part.

The application comes at a time when the country’s power utility is scouting 
for international investors to fund a US$1.3 billion expansion programme 
meant to end the country’s worsening electricity shortages.

ZESA is generating only up to 1200 megawatts against daily demand of between 
1900 and 2200 MW.

Energy problems caused by ZESA’s failure to generate enough electricity are 
among the key challenges said to be holding back the country’s economic 
recovery.

Since the turn of the new millennium, the country has struggled with 
intensifying blackouts of up to 18 hours a day.

The power cuts have plunged many factories and homes into darkness, as 
demand outstrips supply.′

Various high energy consuming industries have been forced to invest in 
expensive alternatives such as generators.

Kariba Dam Wall On Zimbabwe Side Risk Collapsing:Mangoma

Kariba Dam Wall On Zimbabwe Side Risk Collapsing:Mangoma

http://www.radiovop.com

Harare, February 13, 2012 - The dam wall on the Zimbabwean side on one of 
the world biggest dams, Kariba is weak and requires urgent repairs to 
prevent the wall from collapsing, Energy and Power Development Minister 
Elton Mangoma said Monday.

Mangoma who was presenting the state of the energy sector in the country to 
the Mines and Ernegy parlimentary portfolio committee said the Kariba dam 
wall on the Zimbabwean side needs to be anchored to prevent the wall from 
collapsing that might affect the dam and power generation.

"I repeat that the wall on the Zimbabwean side is weak and requires 
anchoring and this is being attended to.It is something that is high on the 
agenda because without the dam wall you really have nothing," Mangoma said.

The Kariba dam on the Zambezi River is one of the largest dams in the world, 
standing 128 m tall and 579 m long. The dam was built by Italians between 
1955 and 1959 during the colonial time when Zimbabwe was still called 
Rhodesia. It borders with Zimbabwe's northern neighbour Zambia which also 
generates electricity on the dam.

At the time of the construction of the dam several people and animals were 
killed forcing authorities to embark on an "Operation Noah" aimed at saving 
thousands of animals while over 57 000 people were relocated to safer areas 
away from the flooding rising water.

Mangoma said his ministry is coordinating efforts to anchor the dam wall 
adding that power generation at Kariba Hydro power station at the moment has 
been between 735 Megawatts to 750 Megawatts.

Mangoma taken to task

Mangoma taken to task

http://www.dailynews.co.zw/

By Gift Phiri, Senior Writer
Tuesday, 14 February 2012 14:58

HARARE - Mines and Energy parliamentary portfolio committee chairman Edward 
Chindori-Chininga yesterday took Energy minister Elton Mangoma to task for 
allowing his permanent secretary to continue defaulting on an electricity 
bill of more than $30 000 that he accrued at his home.

The allegation arose after Mangoma threatened to cut power supplies to 
defaulting legislators’ homes.

The committee was receiving oral evidence from the minister on challenges in 
power generation when Mangoma touched a raw nerve by alleging that 
“honourable members” were not paying their power bills, and were among 
defaulters that currently owe the state utility $400m.

“On customers, we have about $400m  owed by customers including some 
honourable members,” Mangoma told the committee.

“What are we doing about it? I have agreed with Zesa that we will start 
disconnecting honourable members,” the minister added, to howls of protest 
from legislators in the senate chamber.

“Be careful,” interjected Chindori-Chininga, a member of President Robert 
Mugabe’s Zanu PF party.

Chindori-Chininga then challenged Mangoma to name the legislators, 
intimating that he was under legislative oath to qualify his allegations 
with names.

“I will check what the rules are, you might actually want to give us a list 
of who in Parliament owes what amounts (to Zesa). I will ask the chief whip 
and Clerk of Parliament to tell us what the rules are,” Chindori-Chininga 
said.

Mangoma had a torrid time explaining his permanent secretary’s behaviour.

The fiery Chindori-Chininga said the permanent secretary Justin Mupamhanga 
had no moral authority over the State power utility and that the senior 
ministry officials must lead by example.

Asked to comment on allegations that Mupamhanga owed Zesa over $30 000 in 
unpaid electricity bills, Mangoma said: “I am not sure about the exact 
figure but I am aware that he owes, yes.

“And he is supposed to be a policy person directing Zesa what to do?”

Chindori-Chininga fired the next question. “How does he make a directive to 
Zesa when he owes money Zesa?”
Mangoma explained that ministerial directives to Zesa did not originate from 
the permanent secretary or the accounting officer but from him.

Then Chindori-Chininga took it a notch up: “We are also told the governor of 
Manicaland (Chris Mushohwe) owes more than $100 000 (to Zesa).”

Mangoma did not answer the question.

“In Cabinet, you guys owe a lot of money to Zesa and if you want us to give 
names we will, okay,” Chindori-Chininga said.

Parliament instructed Mangoma to boost power generation and rectify the 
problems, and said it would be monitoring the situation to ensure this 
happened.

But he said the utility was saddled with debt.

“Zesa owes about $800m  in old debts. Some of these are being carried in the 
Hwange books. In the end, it’s still a debt that Zesa owes and at this stage 
with the cash inflows of Zesa, there is no possibility of repaying them,” he 
said.

Zimbabwe's debt-crippled power utility plans to get tough

Zimbabwe's debt-crippled power utility plans to get tough

http://news.monstersandcritics.com

Feb 14, 2012, 15:18 GMT

Harare - Threatened with being cut off from electricity imports from its 
neighbours for non-payment, Zimbabwe's state-owned power utility said on 
Tuesday it would cut off hundreds of top politicians and civil servants who 
refuse to pay their bills.

The move comes after Energy Minister Elton Mangoma was castigated in 
parliament after reports that poor people were being disconnected from the 
power grid for arrears as little as 30 dollars, while senior officials had 
not been paying their electricity bills for years.

'We will start disconnecting all cabinet ministers and MPs (members of 
parliament) who are not paying,' Mangoma said. 'There are no sacred cows.'

The minister said unpaid bills by top politicians and senior civil servants 
accounted for a significant part of the 540 million dollars customers owed 
to the Zimbabwe Electricity Supply Authority (ZESA)

Coming in at the head of the list was a provincial governor, Christopher 
Mushowe, who was said to owe ZESA 145,000 dollars. Mushowe did not respond 
to requests for comment.

The ministry itself was said to be in the red to the tune of 30,000 dollars.

Mangoma's disclosures came as he warned that neighbouring Mozambique had 
threatened to stop imports from its giant Cahora Bassa hydroelectric dam for 
non-payment of 90 million dollars.

'That is one debt that we have got to service because if we do not, our 
major source of power will go away,' he said. Zambia is also owed 70 million 
dollars.

Zimbabwean homes, businesses and hospitals suffer long power cuts daily as 
ZESA can produce only 1,300 megawatts each day. Average daily demand is 
about 2,200 MW. The country has been turning to its neighbours for power 
since 2000.

ZESA said it is planning to distribute 5.5 million energy-saving fluorescent 
light bulbs, and is also introducing pre-paid electricity meters.

Zimbabwe power imports at risk

Zimbabwe power imports at risk

http://mg.co.za/

HARARE, ZIMBABWE - Feb 13 2012 18:14

Zimbabwe's energy minister warned on Monday that the country risks losing 
electricity imports from its major supplier if it fails to pay a $90-million 
debt to Mozambique's Hydro Cabora Bassa dam.

"That is one debt that we have got to service because if we do not service 
it our major source of power will go away," Elton Mangoma told a committee 
of lawmakers.

Mangoma said the Zimbabwe Electricity Supply Authority (ZESA) has piled up 
almost a billion dollars in unpaid electricity imports, unserviced loans and 
outstanding contributions to a joint power project with neighbour Zambia.

"At this stage with the cash flows of ZESA there is no possibility of 
re-paying them. We are not planning in the short-term to have them repaid 
but that treasury when they are looking at their debt management will be 
able to look at that."

He said ZESA owes about $800-million of old loans, and $94-million in 
electricity imports including about $90-million to Hydro Cabora Bassa, the 
Mozambican hydroelectric dam that is its main supplier. It also owes 
$70-million to Zambia.

Zimbabwe needs about 2 200 megawatts of electricity at peak but generates 
just 1 300 megawatts, importing the remainder.

Mangoma said is owed ZESA $400-million in unpaid electricity bills by 
consumers and announced plans to cut off defaulters.

ZESA plans to introduce pre-paid meters to improve its revenue and avoid 
resorting to charges based on estimates.

Last year ZESA announced it would hand out more than 5.5-million 
power-saving fluorescent light bulbs to households across the country to 
curb consumption.

End Zesa monopoly — Zerc

End Zesa monopoly — Zerc

http://www.dailynews.co.zw/

By Business Writer
Tuesday, 07 February 2012 11:32

HARARE - Zimbabwe should licence independent power producers to end Zesa 
Holding’s dominance, Zimbabwe Energy Regulatory Authority (Zerc) chairman 
Canada Malunga says.

Malunga told a Parliamentary portfolio committee on mines and energy that 
competition would allow an improvement in utility services and meet the 
country’s growing electricity demands.

Zerc licensed five various independent power producers, but their combined 
production remains too low to influence the power sector.

“At the moment we have one large producer and transmitter (so) in as much as 
you may want to crack a huge whip it’s difficult,” Malunga said.

Operations at Zesa have continued to take a nose-dive with load shedding 
increasing whilst the company’s debtor’s book continues to balloon.

Zesa’s debtors’ book is currently in excess of $500 million, an equivalent 
of seven months of its total revenue according to Malunga.

Government institutions account for about $19 million of the debtors.

“What is worrying is that they are not able to collect that money,” he said.

“There are also leakages and one of the issues which we are fully backing is 
the issue of installing prepaid meters.”

He  said Zerc was willing to partner with the Zimbabwe Investment Authority 
in trying to secure investments in power generation.

However, international investors have also adopted a wait-and-see attitude 
on Zimbabwe given President Robert Mugabe’s persistent call for elections 
and the ongoing indigenisation exercise which compels all foreign owned 
firms to give at least 51 percent shareholding to Zimbabwean locals.

“Our intent is not to frustrate investors, we actually want to attract them” 
said Malunga, adding that there are always concerns of expropriation arising 
from the Indigenisation Act.

“Finance Minister (Tendai) Biti said in his budget there is need for policy 
stability and political stability. In the event that we put a new tariff, to 
what extent is it protected from being overturned.”

Malunga said there was need for assistance from the Finance ministry with 
respect to guaranteeing tax and other financial incentives.

The Confederation of Zimbabwe Industry has approached the courts seeking a 
review of Zesa’s 37 percent tariff hike in September last saying it was 
unsustainable.

The industry body also argued Zesa has effected the new charges without 
consulting industry.

Zim power woes deepen as Mozambique threatens cut off

Zim power woes deepen as Mozambique threatens cut off

http://www.swradioafrica.com/

By Alex Bell
06 February 2012

Mozambique has threatened to cut off its power supplies to Zimbabwe, over 
the country’s multimillion dollar debt to its neighbour, which could leave 
Zimbabwe facing even more power problems.

Mozambique’s Hydro Cahora Basa power plant supplies Zimbabwe with about 500 
megawatts to cover shortfalls, with the national Zimbabwe Electricity Supply 
Authority (ZESA) battling to generate the growing demand of between 1900 and 
2200 megawatts of power. ZESA is said to be generating only up to 1200 
megawatts currently and has been importing power from neighbouring 
Mozambique and from the DRC to cover the shortfall.

But the national power supplier has been unable to pay its debts and it has 
since been reported that Mozambique was threatening to cut off its supplies.
ZESA spokesman Fullard Gwasira, who was quoted by CAJ news, said demand for 
power was increasing and they were in the process of finding ways of 
boosting power generation.

“ZESA Holdings, through its subsidiary companies the Zimbabwe Power Company 
and the Zimbabwe Electricity Transmission and Distribution Company, are 
pursuing various projects and measures to boost the electricity supply 
situation in Zimbabwe to achieve security of power supply,” he said.

The country has been battling intermittent power supply for years, with ZESA 
being just one of many national services that have all but collapsed after 
years of mismanagement under the Mugabe regime.

Construction of new Zimbabwean power plant to start soon

Construction of new Zimbabwean power plant to start soon

http://www.esi-africa.com/node/14090

Harare, Zimbabwe --- ESI-AFRICA.COM --- 24 January 2012 - The French 
consortium which has been granted a licence by the Zimbabwean government to 
build a US$3 billion thermal power plant in the country is in the process of 
finalising preparations to commence construction.

Revealing this to New Ziana, energy and power development minister Elton 
Mangoma said that
when complete, the 2,000MW project which was being rolled out over the next 
four years was expected to alleviate the country's worsening power woes.

Currently, the country's sole power utility, Zesa Holdings, is producing 
about 1,400MW against a national demand of over 2,000MW per day, leaving a 
shortfall which has to be imported.

With the economy now recovering from a decade of contraction caused by 
sanctions by some Western countries, demand for power is rocketing.

The new power station will be situated in the Lusulu coal fields at Binga, 
in the Matabeleland North province of Zimbabwe. The coal fields have an 
estimated 1.2 billion tonnes of coal reserves.

Minister Mangoma went on to say that more firms were showing interest in 
investing in the country's power sector. “People are always making inquiries 
and it is a good thing for our country that we have people willing to invest 
in this sector. As Government we will always welcome new investment,” he 
added.

With Zimbabwe facing a critical shortage of power, the government is also 
pursuing the expansion of the existing power stations at Hwange and Kariba 
to boost supplies. The Batoka Gorge project is another one in the pipeline 
set to offset the country's power woes once implemented.

Zimbabwe Power Demand to Rise 29% in 2012, Supply Authority Says

Zimbabwe Power Demand to Rise 29% in 2012, Supply Authority Says

http://www.businessweek.com

January 03, 2012, 12:00 PM EST

By Godfrey Marawanyika

Jan. 3 (Bloomberg) -- Zimbabwe’s electricity demand is projected to increase 
29 percent this year, boosted by the mining industry, the state power 
utility said.

Demand rose 6.2 percent last year from 2010, Fullard Gwasira, a spokesman 
for the Zimbabwe Electricity Supply Authority, said by phone today from the 
capital, Harare.

Zesa generates 900 megawatts to 1,200 megawatts compared with demand of 
1,900 to 2,200 megawatts. The country imports 35 percent of its electricity 
from Mozambique and Democratic Republic of Congo, yet fails to meet demand, 
resulting in almost daily power cuts. Zimbabwe is the third-largest power 
consumer in sub-Saharan Africa after South Africa and Nigeria, according to 
the World Bank.

The country’s economy is estimated to expand 9.4 percent in 2012, led by 
growth in the finance and mining industries, Finance Minister Tendai Biti 
said on Nov. 24. The economy was forecast to grow 9.3 percent in 2011, with 
mining output climbing 26 percent as the nation attempts to recover from a 
decade-long recession that ended in 2009, Biti said.

Zimbabwe Electricity Transmission and Distribution, a unit of Zesa, said 
power demand by mines in the nation’s northern region is expected to advance 
22 percent in 2012.

“Developments in the mining sector include Maranatha Ferrochrome at 13 
megavolt amperes, Mazoe gold mine at 5.5 megavolt amperes and RioZim Ltd. at 
5 megavolt amperes,” Harare-based ZETDC said in a report handed to Bloomberg 
News.

Industry, Agriculture Demand

Maranatha is a closely held company. Mazoe is owned by South Africa’s 
Metallon Corp. while RioZim was once controlled by Rio Tinto Plc.

Demand by the industrial sector is forecast to rise 55 percent while farms 
will raise demand by 33 percent, ZETDC said.

In the nation’s southern region, the Mimosa mine, owned by Aquarius Platinum 
Ltd. and Impala Platinum Ltd., plans to start using 15 megavolt amperes, 
while the Wel mine, owned by Chinese investors, will need 5 megavolt 
amperes, ZETDC said. Sino- Zimbabwe Ltd. of China is planning an additional 
6 megavolt amperes.

ZESA owed over $500M in unpaid electricity bills

ZESA owed over $500M in unpaid electricity bills

http://www.bulawayo24.com

by Staff reporter
2011 December 22 23:41:15

Zimbabwe Electricity Supply Authority (ZESA) Holdings has said it is owed 
more than US$537 million in unpaid electricity bills by domestic, 
industrial, mining and agricultural consumers as at the end of November.

Spokesperson Shepherd Mandizvidza said the power utility was failing to pay 
for electricity imports to supplement local generation because of the amount 
owed.

He said they were also failing to pay for coal for thermal power stations, 
pay for water for Kariba Hydro Power Station and procure spares for 
transmission and distribution infrastructure maintenance.

"Electricity is a key driver of the socio-economic spectrum and the failure 
by some customers to heed the call to settle their electricity bills implies 
that there would be depressed generation culminating in load shedding as the 
power utility would not be adequately resourced to meet demand," said 
Mandizvidza.

"Zesa Holdings​ is determined to further revive the economy through adequate 
supplies of electricity and it urges customers to meet their side of the 
bargain by settling the bills."

ZETDC, a subsidiary of Zesa dealing with the distribution of electricity, is 
encouraging customers who are facing challenges to settle their bills to 
engage it for payment plans before disconnections are done.

Mandizvidza said many customers were not coming forward to discuss the 
payment plans.

"Some customers still remain adamant and the power utility would have no 
choice but to disconnect supplies to encourage them to pay their bills," he 
said. "To that effect, customers are urged to co-operate with personnel of 
ZETDC as they approach their premises to discharge their mandate."

Mandizvidza said Zesa Holdings had plans to install smart prepaid meters to 
ensure that customers paid for their consumption of electricity.

He said they were awaiting the finalisation of relevant formalities by the 
State Procurement Board (SPB) to engage a service provider of smart prepaid 
meters.

"ZETDC would be in a position to recover the revenue that is locked with 
customers as the technology has in-built mechanism to dedicate some units 
towards customer debt, while at the same time allowing them to survive until 
the bills are cleared," said Mandizvidza.

"ZETDC is not going to write off the bills and it is only logical that 
customers heed the call to clear their debt now."

Mandizvidza said the power utility successfully undertook an exercise to 
clean its billing system and the bills that were being generated were 
accurate.

Zesa has come under fire from customers for its billing system which they 
say is in shambles.

Power outages affect surgery at Parirenyatwa hospital

Power outages affect surgery at Parirenyatwa hospital

http://www.swradioafrica.com

By Tichaona Sibanda
22 December 2011

A four day power cut has seriously affected operations at Parirenyatwa 
hospital in the capital.

Disruption in the supply of power has also forced authorities at the 
hospital to send patients home, while in serious cases patients were 
transferred to private hospitals for urgent operations.

Our correspondent Simon Muchemwa said the outages at Parirenyatwa have 
forced the city of Harare to approach the utility power company ZESA, with a 
plan to resuscitate the thermal power station which stopped working 15 years 
ago.

Muchemwa said repeated calls to ZESA to continue power supply to sensitive 
institutions like hospitals in Harare have fallen on deaf ears. Although 
both Parirenyatwa and Harare hospitals have contingency back-up generators 
that are supposed to kick in when there are power outages, most of the times 
the generators are out of service.

‘Its either they don’t have fuel or there is a mechanical fault with the 
generators, so it has really been a struggle at Parirenyatwa, the most 
affected hospital in the city,’ Muchemwa said.

City fathers have had meetings with ZESA officials in a bid to have the 
thermal station back in the hands of the council, as it used to be before 
the utility company took over in the early 1990’s.

‘Officials in the city council believe that if they can restore the thermal 
station, which uses coal, power from that station will be prioritised to 
institutions like hospitals around the capital,’ Muchemwa added.

Dr Douglas Gwatidzo of Doctors for Human Rights told the media in Harare on 
Wednesday that the country’s chronic power woes must be addressed to prevent 
needless loss of life.

Zesa pre-paid meter project in mess

Zesa pre-paid meter project in mess

http://www.dailynews.co.zw/

By Taurai Mangudhla, Business Writer
Tuesday, 22 November 2011 15:37

HARARE - Zimbabwe's power utility Zesa has been forced to reverse a public 
tender for purchasing prepaid metres after it emerged that the winning 
bidder only intended to lease the equipment.

The smart metres are set to bring an overhaul to Zesa’s shambolic billing 
system through accurate reading and pay-as-you-consume costing.

Both domestic and industrial consumers have for long cried foul over 
unrealistic bills at a time power outages hit record levels in the decade 
long power woes.

Justin Mupamhanga, secretary for energy and power development, yesterday 
told Parliament’s portfolio committee on mines and energy that the tender 
hiccup was stalling the critical power management project.

“The winning bidder actually wanted to lend the equipment to Zesa at a cost 
of $0,65 per transaction which would  make power more expensive so they have 
gone back to the original list for reconsideration,” he said.

“We have not got official communication from the state procurement board and 
this delays a process we had hoped to start this year. We are now looking at 
starting it in the first quarter of 2012,” Mupamhanga added.

He said another power management project — set to see the country receiving 
about five and half million florescent bulbs — was also stalled on the back 
of the tender complications.

Mupamhanga said distribution of the energy saving bulbs, initially slated 
for the last quarter of 2011, will have to be done in the first quarter next 
year.

“It was discovered that none of the companies met the tender specifications 
and a second bidding has been done.
Adjudication will come after December,” he said.

Zesa, which has struggled to collect revenue since dollarisation, argues 
that the current power tarrif is uncompetitive.

In October, Zesa effected a 31 percent tariff hike saying the increased 
revenue was meant to bankroll an ambitious $7, 8 billion rehabilitation and 
expansion of its Hwange thermal and Kariba  Hydro power stations.

The utility is currently reeling under a $500 million debt owed to 
international financing institutions like the IMF while it also owes $102 
million to other utilities in the region.

Zimbabwe’s government owes Zambia about $260 million for the shared Kariba 
Dam infrastructure the country inherited at independence.

Payment of the debt for infrastructure that Zimbabwe inherited from the 
Central African Power Corporation during the federation era — is believed to 
be among the reasons that have stalled the construction of the 1 600 
megawatt Batoka hydro-power station.

Although energy minister Elton Mangoma said the country currently has no 
capacity to settle the 30-year-old debt, there have been indications that 
Zimbabwe may be required to pay only $70, 8 — which excludes interest.

Josh Chifamba, Zesa chief executive recently said consumers are set to pay 
more for their electricity to meet the increase in operation costs arising 
from construction and rehabilitation of  Kariba and Hwange power stations.

He said electricity tariffs are low compared to production expenses and 
could increase by 47 percent in the coming five years to meet power 
expansion costs.

“We are currently retailing at $0,095 per Kilowatt-hour and this is low 
compared to production and you also have to factor in the transmission 
costs.

“As a result, we expect tariffs to go up by about $0, 04 to hit $0,14 in the 
coming five years,” he said, adding that tarrifs would go up to pay for the 
face-lift as is the case of neighbouring countries.

The two projects are meant to increase power output to 2 220 megawatt from a 
current 1 320 megawatt which leaves a 640 megawatt deficit.

The country has a total installed capacity of 1 680 megawatts, with 750 MW 
from Kariba South, 780 MW from Hwange Power Station and 150 MW from small 
thermals — but only 940 MW of this is currently available against a peak 
demand of 1 950 MW.

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