20 January 2018
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
Zimbabwe not obliged to buy electricity from SA, says Eskom
25/07/2016 00:00:00
by Business Day (SA)

POWER utility Eskom has said its northern neighbour, Zimbabwe, is under no compulsion to continue buying electricity from it, amid indications that Zimbabwe might struggle to keep up with tariffs.

Zimbabwe is spending $6.6m a month to buy electricity on a prepaid basis from Eskom.

The possibility of Zimbabwe pulling the plug on its power imports heightened after a 49% tariff hike sought early in 2016 by Zimbabwe’s power utility company, the Zimbabwe Electricity Supply Authority (Zesa), was rejected last week by the Zimbabwe Energy Regulatory Authority (Zera).

Zera chairwoman Ester Khosa said the electricity tariff would remain at 9.86 US cents per kilowatt hour for the remainder of 2016.

"In coming up with the decision to retain the current tariff levels, we considered the performance of the economy in 2014 and 2015, the government’s efforts to improve the ease of doing business, and to support the government in reducing the cost of doing business," Khosa said.

Instead of the tariff hike, she said there was a need for Zimbabwe’s power utility to improve efficiency levels and to implement cost-cutting.

The hike, among other things, would have been used to pay for power imports and would also have assisted Zesa pay for some of its infrastructure capitalisation projects.

Zimbabwe imports power mainly from SA and Mozambique.

An Eskom official told Business Day that Zesa has an agreement with it to import power of up to 300MW, but this could be less, subject to the daily power demands experienced in the country.

Eskom spokesman Khulu Phasiwe said: "For our side it’s not a big deal even if no country buys electricity.

“We won’t put a gun to their (Zesa) head; our first priority is the domestic market. We then sell to other nations in the Southern African power pool such as Namibia, Botswana and Tanzania.

"The sell of power to Zimbabwe is based on their demand, (and) where we only sell when we have excess capacity. So for as long as we have extra electricity, then we are in a position to sell."

Zesa spokesman Fullard Gwasira said strain as a result of the tariff hike rejection was inevitable.

Consumers in Zimbabwe owe Zesa arrears of up to $1bn.

This large debt has crippled power supplies in the country and negatively affected the productive capacity of Zimbabwe’s industries.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker