Zesa debt write-off has not affected operations

Published: 18 December 2013

The debt that power utility, Zesa holdings wrote off last month on domestic consumers and farming communities has not had a significant impact on its operations, a senior government official said on Tuesday.

Zesa slashed debts amounting to $80 million belonging to the farming community while domestic consumers benefited from a debt relief of $160 per household, the New Ziana reported.

The total debt relief for domestic consumers amounted to $90 million. Orphanages, old people's homes and welfare organisations such as Jairos Jiri benefited from a total debt relief.

Following the write off, concerns were raised that Zesa's ability to provide electricity would be compromised.

However, Energy and Power Development Deputy Minister Munacho Mutezo said the scraping off had worked in Zesa's favour as most consumers are now settling their bills on time.

"The scraping, and it was not total offset of bills, it was a partial offset to relieve people in view of the attitude consumers were having in paying their bills, has had no significant impact on the ability of Zesa to perform," he said.

"It has actually worked as an incentive for people to pay their bills."

Zesa's move to slash debts came after government ordered local authorities to cancel debts that residents owed from February 2009 to the end of June 2013.

State owned fixed line operator, Tel-One also cancelled $80 million domestic debts. Zimbabwe is presently facing power shortages with Zesa generating about 1 200MW against peak demand of over 2 000MW.

To remedy the situation various projects are being undertaken to improve power supply including the expansion of Hwange thermal and Kariba South hydro power stations as well as construction of the Batoka Gorge power plant.

- New Ziana

Tags: Zesa,