ZETDC steps up recovery measures on $1bn debt

23 Aug, 2015 - 04:08 0 Views

The Sunday News

Tinomuda Chakanyuka Sunday News Reporter
ZESA Holdings power evacuation and supply unit, Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has warned its owing customers of “stepped-up credit control measures”, as it moves to recover outstanding debts. ZETDC is owed over $1 billion by customers in unpaid bills dating back to 2009 when the country introduced the multi-currency system.
In a statement last week, ZETDC managing director Engineer Julian Chinembiri said all customers whose accounts were in arrears should approach their nearest ZETDC customer services centre to negotiate payment plans.

The power utility is apparently not satisfied with the rate outstanding accounts are being settled using the prepaid system.
Under the prepaid meter system, Zesa directs 20 percent of every purchase of electricity to offset the individual’s debt accumulated under the old meter system.
“ZETDC would like to inform its valued customers who are in arrears to settle their accounts. Credit control measures have been stepped up to recover all outstanding debts. Customers that need payment arrangements should contact their respective sales managers,” Eng Chinembiri said.

He said the arrears settlement would capacitate the power utility to implement the power supply expansion projects at both Kariba and Hwange Power Stations in order to boost generation and reduce load shedding.

Zesa Holdings spokesperson Mr Fullard Gwasira confirmed the power utility having stepped up credit control measures but was reluctant to discuss the specific measures and the extent to which the measure had been stepped up.

“Stepping up means that we want people to pay what they owe us. If people pay up that will enable us to fulfil our mandate as a power utility. We have power supply expansion projects at Kariba and Hwange which need financing to be complete.

“We need about $1,1 billion to complete the Hwange expansion project and about $500 million for Kariba. We need to build new power generation units without having to borrow and that can only happen if people settle their accounts,” he said. Mr Gwasira said the power utility was not impressed with the slow rate accounts were being settled using the prepaid system, hence the move to encourage customers to come up with payment plans to clear their debts.

“We have a situation where someone owes us $10 000 and every month they buy electricity worth $10. Now imagine how long it will take for 20 percent of $10 to clear a debt of $10 000.

“Some people owe us and have stopped buying electricity, which means their debts are not being serviced.
“We have been collecting revenue at a very slow rate and we need to improve, which is why we are encouraging people to pay up. That scheme was introduced to provide relief for our customers, but they also need to come to us and discuss how else they intend to settle their accounts,” he said.

Mr Gwasira said the power utility also need money to pay for electricity which is being imported from Zambia.
He said with the completion of Hwange and Kariba expansion projects the country would reduce importation of electricity and load shedding will become “a thing of the past”.
The Kariba South extension project is expected to generate an additional 300MW by 2017, while expansion of Hwange Thermal Power Station’s units 7 and 8 is expected to add another 600 MW to the national grid.

Zimbabwe’s daily peak demand for power is estimated at about 2 500 MW against a 1 300 MW generation capacity.

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