Zesa Holdings
Zesa Holdings is negotiating with EDM to close a 100MW power importation deal.

Zimbabwean state-owned power utility, Zesa Holdings, anticipates reviewing its proposed 14c/kWh increase in response to ongoing discussions with Mozambique’s Electricidad de Mocambique (EDM) to import 100MW of power.

Zesa’s spokeperson Fullard Gwasira told the Herald that the power utility’s executives are currently in Mozambique trying to close a deal for power importation.

“I can confirm that Zesa officials left to negotiate with EDM for additional power imports,” he said.

He added “These power imports explains the improved power supply in the country. There has been no load shedding in the past weeks because of interventions by sister utilities and our own initiatives.”

300MW power imports

Over the past few weeks, Zimbabwe has been importing 300MW from South Africa’s state-owned power utility, Eskom.

Gwasira highlighted that the power imports are pre-paid, explaining the need for Zesa Holding’s consumers to do the same.

“For all these initiatives in the region, we are pre-paying and we urge customers to pre-pay because this is the only way we can guarantee this improved electricity supply situation,” he stressed.

Furthermore, the Chronicle reported that energy experts explained that should the EDM deal be successful, the increased imports coupled with stable local power generation, would “dilute the bulk supply tariff”, suggesting that it would complement the Zesa Holding’s generation capacity.

Reviewing electricity tariffs

The Herald reported that the Zimbabwe Energy Regulatory Authority is currently holding stakeholder consultations on the proposed electricity increase. The stakeholders include the farming community, industrialists as well as the mining sector.

The proposed power tariff increase has not been well received by farmers, miners and industrialists, citing that the electricity  increase would escalate their production costs.

However, Energy and Power Development Minister Samuel Undenge has stated that it won’t be possible to revise the proposed tariff increase because Zesa has to urgently finance required power generating projects.