Firms get ultimatum

The companies are ZTE Corporation, a Chinese company, and Nyamazela of South Africa.

The two companies were expected to deliver a combined 12 000 prepaid meters early this year.

The meters were supposed to be used for Zesa’s pilot project on the installation of prepaid meters.

Zesa officials said ZTE only delivered 2 000 prepaid meters by plane yesterday after the ultimatum was issued.

Zimbabwe Electricity Transmission and Distribution Company (ZETDC) managing director Engineer Julian Chinembiri yesterday said the power utility wrote to the companies informing them of the position.

“We have written to the two (companies) because the meters should have been supplied long back but to date they have failed. We have given them 14 days to deliver the meters because we want to move forward with the project. If they fail then we are left with no option than to contract other suppliers,” he said.

Zesa needs about $60 million to install prepaid meters countrywide. Payment is done on installed meters.

ZETDC senior project manager Engineer Wilfred Shereni said they were expecting 35 000 meters this month from Solahart and Finmark.

“We are expecting 20 000 prepaid meters from Solahart while Finmark will bring close to 15 000 before the end of this month.”

Zimbabwe has 600 000 registered consumers that should have prepaid meters in the next 10 months.

Zesa has installed 32 000 meters in Harare and Bulawayo since the project started in August this year.

Installation is expected to start soon in other areas.

Eng Chinembiri said plans were under way to appoint third party vending platforms for consumers to buy credit for prepaid meters.

At the moment, credit vending points are in selected ZETDC offices in Harare and Bulawayo.

Minimum denominations for recharge cards are $5.

There is, however, no limit on the amount of electricity a consumer can buy.

The new prepaid meter system will see consumers taking complete control of their electricity bills.

The system is expected to improve efficiency in electricity usage, Zesa’s revenue flows and denting the debt consumers owe the power utility.

The smart meters replace the conventional billing system that had posed challenges to the power utility and the consumers.

Consumers have refused to settle their bills arguing Zesa’s billing system was based on estimates.

Under the prepaid meter system, those owing Zesa will have 20 percent of the amount paid for electricity deducted to settle the debt.

The meter is installed for free.

Zesa is owed more than $600 million by domestic and commercial consumers.

The poor debt management system has also seen Zesa struggling to settle foreign debts.