Home Southern Africa Zimbabwe to disconnect power supplies to companies having huge arrears

Zimbabwe to disconnect power supplies to companies having huge arrears

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Zimbabwe’s state-owned electricity distributor is contemplating   to  stop its supplies to mines, farms and other users as it looks to recover US$77 million in unpaid bills. The state-owned power utility is grappling with drought and ageing equipment. Zimbabwe is experiencing daily power cuts lasting up to 18 hours after the water levels in its dams receded on account of a severe drought. Two hydro-electric plants are hit and on account of that affecting generation of electricity.   Also, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) is also being hampered by ageing coal-fired electricity generators, which constantly break down. Presently, it has to collect over US$ 77 million arrears from the users, which also include some of the large public sector companies. The Chamber of Mines, which represents big platinum and gold producers and other miners, has taken up the issue at the highest level and said its members were paying for power supplies in dollars to guarantee supply and will not be affected by the disconnection. Zimbabwe was generating 688 MW of electricity on an average, which is less than half its peak demand. The country imports up to 400 MW from South Africa and Mozambique. Recently, Zimbabwe recently hiked its average electricity tariff by 320% to increase power supplies, angering consumers already grappling with soaring inflation and the country’s worst economic crisis in a decade.

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