Staff Reporter
POWER utility, ZESA Holdings has engaged the services of private law firms to collect money owed by the corporate sector. Many companies have, for a long time, failed to settle their bills in a move that has further crippled the ailing parastatal.The Financial Gazette understands that the perennial loss-making company is owed over US$300 million by corporates and the cash-strapped government.
ZESA, which embarked on an unbundling exercise in 2003 to form various strategic business units is said to be owed close to US$100 million by its top 100 debtors.
Sources at ZESA this week said the power utility had engaged external services to track its debtors following failure by its internal debt recovery system. The system, according to sources, has been overwhelmed due to manpower shortages.
Acting ZESA spokesperson, Sheph-erd Mandizvidza, confirmed the development, but could not shed more light on the identities of the private law firms.
“ZETDC (the Zimbabwe Electricity Transmission and Distribution Company) has a credit control and debt recovery mechanism that encompasses the legal framework. However, due to the confidentiality clauses that exists between the electricity utility and the external services providers, we are not at liberty to disclose their identities,” he said.
“It is also worth nothing that. . . overall ZETDC is owed US$424 million as at 31st July 2010 by all customers of all categories.”
About 63 percent of ZESA’s consumers fall in the industrial consumption grid. But the company has been battling to supply electricity to industries due to reduced electricity generation.
Concerns have also been raised by electricity consumers over ZESA’s billing system, which is in shambles.
Early last year former energy and power development minister, Elias Mudzuri, set a ceiling for electricity charges after an uproar by consumers who were receiving huge bills.
The power utility is in urgent need of a capital injection of close to US$400 million to finance power imports, procure spare parts for network maintenance and the purchase of thermal power stations.
Most companies in Zimbabwe are limited to an average of 12 hours of electricity supply daily because of the power deficit.
Despite the power shortages, the country is exporting 150 megawatts to Namibia under a US$40 million deal where Namibia power utility, NamPower provided capital for the refurbishment of power units at Hwange Thermal Power Station in exchange for electricity.
Several potential investors have expressed interest in power generation but the capital-intensive nature of the industry acts as a prohibitive factor.
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