ENERGY minister warned Monday the country risks losing electricity imports from its major supplier if it fails to pay a US$90-million debt to Mozambique's Hydro Cabora Bassa dam.
“That is one debt that we have got to service because if we do not service it our major source of power will go away,” Minister Elton Mangoma told a parliamentary committee.
Mangoma said the Zimbabwe Electricity Supply Authority (ZESA) has piled up almost a billion dollars in unpaid electricity imports, unserviced loans and outstanding contributions to a joint power project with neighbour Zambia.
“At this stage with the cash flows of ZESA there is no possibility of re-paying them. We are not planning in the short-term to have them repaid but that treasury when they are looking at their debt management will be able to look at that.”
He said ZESA owes about $800 million of old loans, and $94 million in electricity imports including about $90 million to Hydro Cabora Bassa, the Mozambican hydroelectric dam that is its main supplier. It also owes $70 million to Zambia.
Zimbabwe needs about 2,200 megawatts of electricity at peak but generates just 1,300 megawatts, importing the remainder.
Mangoma said the power utility is owed ZESA $400 million in unpaid electricity bills by consumers, and announced plans to cut off defaulters.
ZESA plans to introduce pre-paid meters to improve its revenue and avoid resorting to charges based on estimates.
Last year ZESA announced it would hand out more than 5.5 million power-saving fluorescent light bulbs to households across the country to curb consumption.
Authorities also increased charges 31 percent last year to 9.83 cents per kilowatt hour.