The Sunday News
Ngonidzashe Chiutsi, Business Correspondent
THE cost of producing bread and other confectioneries has gone up by 30 percent as players in the sector have resorted to the use of diesel-powered generators in the wake of heavy load-shedding being implemented across the country.
In an interview on Friday, National Bakers’ Association of Zimbabwe president Mr Givemore Mesoemvura said the recovery of bakery industry was under threat due to incessant power cuts.
“We are having a torrid time because of the power cuts affecting our production and we are resorting to use generators that are costly to run,” said Mr Mesoemvura.
He said using generators was costly and threatening the viability of bakeries.
“When we are using generators, it affects our cost structure and our operational costs are going up by 30 percent. The power outages are so erratic that we don’t know the load shedding schedule. We are having a situation whereby we are sometimes losing about 10 hours of production and this is causing us to fail to meet the demand,” he said.
Some bakeries in Bulawayo, especially those being operated by retail shops and situated in residential areas where load-shedding is rife, have reportedly closed their bakeries sections. Mr Mesoemvura, however, said they had not passed the costs to customers.
“At the moment we are managing to contain the costs but with time we won’t manage,” he said.
Virtually all the sectors of the industry have been affected by the power cuts. The announcement by bakers comes after Zesa also announced on Friday that power supply might worsen as the country was generating just 50 percent of the national demand of more than 200MW.
The parastatal added that the load shedding programme was going to be revised in accordance with the reduced supplies.
“In addition, the intention is to take out central business districts from the list of essential load,” said Zesa in a power situation update.
It also said from tomorrow, as announced by Power and Energy Development Minister Dr Samuel Undenge the company will remove Sable Chemicals from the national supply system in order to free 40MW. The parastatal reiterated that power shortages were a result of reduction declining water levels at Kariba Dam.
“Quite understandably, due to the disruptive nature of load shedding, this has not gone down well with our customers and other stakeholders. Apart from the huge inconvenience to customers, the situation will also have a negative impact on the national economy as a whole. Companies, including Zesa, will suffer from reduced revenues, agricultural output will be similarly affected and this will in turn affect revenue flow into the national treasury,” said in a statement.
The power utility said they have adopted a number of measures and strategies to minimise the impact of the increased power shortage.
“A number of power generation and requisite power transmission projects are being carried out to alleviate power shortages.
Kariba South Extension projects (300) is in progress. The first 150MW unit is scheduled to be commissioned in December 2017 while the second one will be commissioned in March 2018,” said Zesa in a statement.
“A contract has already been signed for the 600MW Hwange Expansion Project. Focus is now reaching financial closure for the US$1,5 billion project,” added Zesa in a statement.
The power utility also said small thermal power stations were due to be repowered to restore some capacity and enable them to operate with less expensive coal.
“The project, which will take 18 to 24 months per power station, is at various stages with Harare Power station close to implementation,” said Zesa.
Zesa also encouraged private sector involvement in the generation of electricity as another way of resolving the shortages.
Most parts of the country have been going for up to 18 hours without electricity following the reduction of generation capacity at Kariba Power Station from 750MW to 475MW.
Last week Undenge said as part of measures adopted by Government to reduce massive power cuts being experienced countrywide, mining companies and other huge electricity consumers will have to reduce consumption by up to 25 percent.
He also said security areas have been asked to load-shed non-critical areas.
Dr Undenge said generation at the small thermal power stations in Harare, Munyati and Bulawayo would also be increased to augment supplies from Kariba Hydro Power Station.
