dyton mupawaenda
Blessings Chidakwa
Herald Reporter
PRIVATE players will soon be eligible to generate, distribute and transmit electricity to households, particularly in new suburbs countrywide, acting as retailers complementing ZESA Holdings, which will remain the sole regulator.
This follows the realisation by the Government that ZESA alone was financially struggling to expand into all the new urban areas, hence the need to rope in the private sector.
This model has been implemented elsewhere, including in neighbouring Zambia, where there are two private players in transmission and distribution services the Copperbelt Energy Company and the North Western Energy Company.
Speaking at a National Energy Compact workshop in Harare last Wednesday, Energy and Power Development Minister July Moyo said the Government had realised that ZESA alone could not expand into all the new urban areas, which he described as “dark cities”.
“ZESA’s investment might not be enough to take electricity to the households. So, we invite the private sector to say, is there an allowance for the private sector to now take over and be the retailer in those areas?
“Our position, which Cabinet has already agreed to, is that we should invite the private sector,” he said.
Minister Moyo said a process had begun to identify ZESA’s reflective tariff, also known as a cost-reflective tariff.
It is a pricing mechanism where electricity prices accurately reflect the true cost of generating, transmitting, and distributing electricity.
“I want to see the percentage of our reflective tariff. If our reflective tariff is 16 cents, what is the share of generation? What is the share of transmission? What is the share of distribution?” he said.
“So, in order for the private sector to understand cost-reflective tariffs, it should not just be a cost-reflective tariff at the tail end it must be a cost-reflective tariff at generation, transmission, distribution, and retail.”
Minister Moyo said Zimbabwe has sufficient private sector initiatives and capital, and that capital, when leveraged with other private sector institutions outside the country, will surely guarantee electricity stability.
Online Reporter