The Permanent Secretary in the Ministry of Energy and Power Development, Partson Mbiriri, has announced that the government has approved the re-bundling of ZESA Holdings with hopes to curb the high cost of running the business.
The move is also expected to potentially result in a reduced power tariff or remaining at the current average rate of $9,86c per kilowatt hour, reports the Herald.
Mbiriri noted: “ZESA used to be one company. But we created eight entities out of the one company and each one has a chief executive officer, if not several chiefs; and each one has a vehicle which matches the title.
“The costs are too high. Cabinet has decided we shall revert to one ZESA. We will have a few chiefs (and) the costs will come down. It will not be a popular decision (with the management).”
The Government unbundled ZESA and created five companies namely: Powertel Communications, Zimbabwe Electricity and Transmission Distribution Company, Zimbabwe Power Company, ZESA Enterprises and ZESA Holdings.
The Government further set up the Rural Electrification Agency and the Zimbabwe Regulatory Authority. Read more: Zimbabwe’s regulator maintains banning incandescent light bulbs
Entities operating in silos
He continued: “For Zesa Holdings and its four subsidiaries, we are in the process of amalgamating them. That will have a telling impact on the tariff. I am not saying the tariff will come down, but we might hold on to where we are as we will have a leaner administration.”
Apart from several chief executives, it is reported that all of the companies under Zesa Holdings have separate departments such as marketing, human resources, accounts and public relations.
Mbiriri was cited saying that such duplication of roles was unfortunate and should be stopped.