Zesa to get shot in arm

Fund to procure spares for infrastructural maintenance.
The company would also pay for electricity imports to augment local generation, a Cabinet minister has said.
Finance Minister Tendai Biti said this week the fund had so far generated over US$40 million, the bulk of which would be targeted towards the power sector. This would ensure the yearly target of 1 650MW is met.
“Various interventions in the power sector by the Government and Zesa have resulted in improved electricity supply since the beginning of the year,” said Minister Biti. Government has started disbursing part of the US$20 million budgeted for in the 2011 National Budget. “The power utility will also benefit from part of the resources being mobilised under the Multi-Donor Trust Fund.”
Electricity generation has been progressively increasing from about 900MW in January this year to about 1 200MW in March largely due to improved revenue inflows which have provided the power utility with money to resuscitate the three small thermal power stations.
Zesa is currently operating five units at Hwange Power Station, with an average output of 500MW while Kariba South Power Station is also generating an average 500MW from four out of six units.
Two units have been taken out for statutory annual maintenance, which has resulted in a 250MW output reduction.
But the three small thermal power stations of Harare, Munyati and Bulawayo are now generating an average of 30MW each, improving electricity availability to the national grid.
Zesa Holdings is augmenting the available power with imports of 210MW.
Meanwhile, Zimbabwe Electricity Transmission and Distribution Company has threatened to cut supplies to defaulting consumers amid revelations that Zesa’s sub-unit is owed US$450 million in unpaid bills.
“ZETDC is owed US$450 million by consumers countrywide as at the end of March 2011. ZETDC has always encouraged customers to engage it for payment plans, but in some cases, they have chosen to ignore the call while their bills accrue. In such cases, the company is left with no option but to discontinue the service as a way of encouraging the defaulting customers to settle their bills,” said Zesa.
The company said the installation of prepayment meters was now at an advanced stage and will most likely be completed this year.