HARARE: The Zimbabwe Power Company (ZPC) says it is facing cash flow problems attributed to a debt of $540 million owed by its sister electricity distribution firm ZEDTC, which it expects to recover from improved revenues due to the prepaid electricity system.
ZPC managing director Noah Gwariro said the company faced a myriad of problems during the first quarter of this year, including external grid disturbances resulting in 34 power trips and cash flow challenges.
“We do have cash flow constraints. We believe that with the solution that ZEDTC has put in place through prepaid meters we will get paid. The consumer capacity to pay is also dependent on the performance of the economy,” he told journalists during a media briefing on Thursday.
Gwariro said ZPC was owed over $540 million by the Zimbabwe Electricity Transmission and Distribution Company and has, in turn, debts amounting $99 million.Both companies are subsidiaries of ZESA Holdings.
At the beginning of the year ZEDTC said installation of prepaid metres was 98 percent complete after installing 524,000 out of the 532,000 metres (by last December) and expected to complete the project during the first quarter.
Zimbabwe is in the grip of perennial electricity shortages due to the diminished generating capacity of its ageing plants and lack of investment in new infrastructure. The country currently generates half of its 2,200 megawatt peak demand.
The introduction of prepaid electricity platform in 2012 is an important demand-side management measure meant to guarantee revenue streams as users pay for power in advance, while also managing their consumption better.
Gwariro said the company had embarked on power generating projects at a cost of $5 billion which will add 3,500MW to the national grid in the next six years.This year alone ZPC increased the power sent out by five percent to 9,783GWh compared to 2014.
He said Kariba contributed 51 percent of power to the national grid, Hwange whose equipment is antiquated and requires $600 million to extend its life is contributing 30 percent. Imports account 13 percent while small thermal power stations contribute six percent.
On the Kariba South expansion programme, Gwariro said civil works were currently underway, with three out of the six access points to the dam wall completed while the fourth one is nearly through.
