Online Reporter
Nqobile Bhebhe, Senior Zimpapers Writer
A LOCAL energy company, Primo Power (Private) Limited, has been granted a retail electricity licence, allowing it to purchase, sell and trade power, thereby complementing the Zimbabwe Electricity Supply Authority (Zesa) in electricity distribution.
The licence was issued by the Zimbabwe Energy Regulatory Authority (Zera) in terms of Section 4 (1)(e) of the Energy Regulatory Authority Act (Chapter 13:23), as read with Sections 44 (3) and 44 (5) of the Electricity Act (Chapter 13:19) of 2002.
While Zera has traditionally received licence applications from Independent Power Producers (IPPs) focused on generation, this development signals the emergence of an electricity retail market in Zimbabwe, driven by private sector players seeking to provide alternative and customer-tailored energy solutions.
Electricity distribution and bulk transmission in the country are handled by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of Zesa Holdings. Although IPPs primarily generate electricity for their own use, any surplus can be sold to the national grid through ZETDC.
“Subject to the provisions of the Act and the terms and conditions of this licence, the holder of this Retail Supply Licence shall purchase power from bulk licensees, local generators and external suppliers in an open and transparent manner for resale in accordance with the terms of this licence,” said Zera chief executive officer, Mr Eddington Mazambani.
The licence granted to Primo Power comes at a time when Government is working on regulatory reforms aimed at liberalising the energy sector.
Energy and Power Development Minister, July Moyo, recently confirmed that Zimbabwe is developing a regulatory framework for a competitive local electricity exchange.
This initiative is expected to attract more private-sector investments in power generation and transmission.
Under the proposed framework, power producers will be allowed to supply electricity directly to customers of their choice, fostering competition in the market and potentially reducing costs for consumers.
This follows earlier moves to liberalise the electricity retail sub-sector, allowing power producers to select their customers.
Analysts say the reforms represent a major shift in Zimbabwe’s energy landscape and are likely to improve efficiency and customer satisfaction in the long term.
Zera is a body corporate established in terms of the Energy Regulatory Authority Act (Chapter 13:23) of 2011.
It is mandated to regulate the entire energy sector in Zimbabwe in a fair, transparent, efficient and cost effective manner for the benefit of the consumers and energy suppliers.
Zera derives its mandate from the Energy Regulatory Authority Act (Chapter 13:23) of 2011 read together with the Electricity Act no 4 of 2002 (Chapter 13:19), the Petroleum Act (Chapter 13:22) of 2006 and subsequent amendments.
