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Former <a href="https://www.pindula.co.zw/ZESA">Zimbabwe Electricity Supply Authority (ZESA)</a> chief executive officer, Engineer <a href="https://www.pindula.co.zw/Josh_Chifamba">Joshua Chifamba</a> has blamed unfavourable tariffs for sinking the nation into the current electricity crisis.
He speaks when Zimbabwe is experiencing a huge power deficit that has seen both households and industry enduring 18 or more hours-long power cuts which authorities have attributed to declining water levels at Kariba Dam. <a href="https://www.newzimbabwe.com/former-zesa-ceo-blames-low-tariffs-delayed-sacrifices-for-current-electricity-problems/">NewsZimbabwe.com</a> cites him as saying:
<blockquote>
Kariba would thus change its operating regime &amp; the wholesale price of electricity would be reduced, as imported peaking power was coming in at USc45/kWh, against a retail tariff of USc9/kWh.
This change was never supposed to be a threat to water in Kariba that it has become.
Thus, Zambia Electricity Supply Corporation Limited, with the same capacity as ZESA at Kariba; but unlike ZESA having leverage to operate according to the new operating regime; after having built new power stations; has kept within its water allocation. It’s that simple!
So, the addition of generators at Kariba is not, in and of itself, the cause of the water problem at Kariba.
Issues in the sector have been left unresolved for far too long! The main Achilles heel have been sub economic tariffs and a challenging economic environment.
</blockquote>
Chifamba said outside peak time, output at Kariba was supposed to reduce, to allow for increased output at peak.
Economists have since warned that should the electricity crisis continue unresolved, efforts made to revive the ailing economy will soon be reversed due to erratic productivity.
The government has however made some interventions which include revamping ZESA’s institutional sustainability and tabling plans for further expansion of the power generation capacity among others.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

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Former ZESA CEO Speaks On The Causes Of The Electricity Crisis

Former ZESA Holdings chief executive, Josh Chifamba, said that the sub-economic tariff which the power utility has been charging “for a long time” is the main reason for the current electricity crisis.
Last week, the Zambezi River Authority (ZRA), which manages Kariba Dam, ordered ZESA to stop production at the Kariba South hydroelectric plant because of low usable water levels.
ZRA advised ZESA that a further review of the substantive Hydrological Outlook at Kariba will be undertaken in January.
Kariba is the country’s largest power plant, with the capacity of producing 1 050MW, and has been the most reliable.
The ageing Hwange Thermal Power Station, which is the country’s second-largest plant, has become unreliable because most of its equipment is obsolete.
Speaking during an interview with <a href="https://www.businessweekly.co.zw/zim-pays-price-for-sub-economic-power-tariffs/">Business Weekly</a>, Chifamba said:
<blockquote>
Issues in the sector have been left unresolved for far too long. The main Achilles’ heel has been sub-economic tariffs and an unfavourable macroeconomic environment. That has to be fixed.
</blockquote>
He said the country should have invested in new power stations to avoid over-relying on Kariba Power Station.
Chifamba said the rationale for Kariba expansion was that with additional generators, load shedding, especially at peak, would be alleviated. He said:
<blockquote>
Kariba would change from running as a base load (24-hour) station and operate as a mid–merit cum peak (18-hour) station.
You cannot run Kariba as a base load station because that consumes a lot of water.
The impact on the economy can be so huge. We had a similar situation in 2015 when water levels declined and production went down to around 200 MW.
That is why we resorted to bringing on Dema (diesel power plant) (The situation was so bad).
So the addition of generators at Kariba is not, in and of itself, the cause of the water problem at Kariba.
</blockquote>
Chifamba noted that Zambia’s ZESCO, with the same capacity as ZESA at Kariba; after having built new power stations; has kept within its water allocation.
He urged ZESA to immediately move towards a cost-reflective tariff to enable the country to import. Said Chufamba:
<blockquote>
They should try to mop up power in the region’ so they need to revise the tariffs so that they will have (enough) equivalent Zimbabwe dollars to pay for the imports.
</blockquote>
Currently, customers are paying US9.2c kWh, excluding exporters, which can be paid in local currency at the prevailing interbank rate.
Exporters, with effect from October 1, 2022, are paying US10.12c per kWh.
Meanwhile, the World Bank carried out a study on the country’s power tariff regime and recommended a cost-reflective price of US15c kWh.

Zimbabwe Paying Price For Sub-economic Electricity Tariffs, Says Former ZESA Official

The Zimbabwe Anti-Corruption Commission (ZACC) has arrested former Zimbabwe Energy Supply Authority (ZESA) chief executive officer and two senior managers over corruption allegations.
Zim Morning Post reports that former Zesa group chief executive officer Josh Chifamba, company secretary Saidi Sangula and the corporate manager Garikai Churu were arrested on Monday accused of violating corporate governance principles.
They had appointed Chihambakwe, Mutizwa and Partners as the company’s debt collectors without board approval.
This is not the first time Chifamba has been arrested after he, together with the Zimbabwe Electricity Transmission and Distribution (ZETDC) managing director Engineer Julian Chinembiri and his finance director Thokozani Dhliwayo were arrested in 2018 connection with over $35 million underhand dealings involving an Indian company PME.
The arrest comes shortly after <a href="https://news.pindula.co.zw/2020/07/09/full-list-zesa-fires-eight-top-managers-following-forensic-audit/" rel="noopener noreferrer" target="_blank">ZESA this month fired eight top managers</a>, demoted two and suspended three who allegedly abused a fuel coupon facility.
The rot was revealed in the report of a forensic audit that was undertaken and published last year.
Meanwhile, some senior managers are reportedly being transferred to other provinces.
ZESA is one of the government’s parastatals whom the Auditor General has repeatedly found wanting as far as upholding good governance principles is concerned.
More: <a href="https://zimmorningpost.com/former-zesa-grp-ceo-and-two-others-arrested/" rel="noopener noreferrer" target="_blank">Zim Morning Post</a>

Former ZESA CEO, Senior Managers Arrested Over Bad Governance

ZESA Holdings, Zimbabwe’s power utility is looking for a new group chief executive officer following the termination of Engineer Josh Chifamba’s contract recently.
In a notice, ZESA said:
<blockquote>Applications are invited from suitably qualified and experienced persons to fill the position of group chief executive officer that has arisen in the utility.</blockquote>
The former CEO, Chifamba was arrested in 2018 in connection with alleged criminal abuse of office. Resultantly, the company’s board decided not to extend his second term. His contract expired last year, having been extended by four years after earlier serving for three years as Zesa chief executive officer.
More: <a href="https://www.chronicle.co.zw/zesa-hunts-for-new-ceo/" rel="noopener noreferrer" target="_blank">The Chronicle</a>

ZESA Holdings Moves To Replace CEO

Power utility ZESA  is incurring huge losses, after lossing $140 million in 9 months.  This is expected to increase to $233 million by the end of the year, which is double the losss made last year of $111,4 million.
ZESA Chief Executive Josh Chifamba said:
<blockquote>We are actually haemorrhaging as it is. We are selling power at below cost.
The utility has not been awarded a tariff increase since 2011 and there has been no financial provision for the temporary emergency power plant and this has negatively affected the financial position of the utility.</blockquote>
More: <a href="http://source.co.zw/2016/11/haemorrhaging-zesa-sees-loss-doubling-to-233-mln/" target="_blank">The Source</a>

ZESA loses $140m in 9 months,  expected to lose $233m  in 12 months

The current is facing imminent power shortages which will lead to load shedding due to the fact that  <a href="http://www.pindula.co.zw/Zimbabwe_Electricity_Supply_Authority_Holdings" target="_blank">ZESA</a> is failing to pay for power being imported from South Africa and Mozambique.  ZESA has arrears with  its suppliers because the power utility is receiving only $1,5 million from the<a href="http://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe" target="_blank"> Reserve Bank of Zimbabwe (RBZ) </a>instead of $5 million.
ZESA Chief Executive Josh Chifamba  told the Mines and Energy Committee that:
<blockquote>As we stand now we are in serious arrears on both accounts that is Eskom of South Africa and Hydro Cahora Bassa (HCB) of Mozambique
We have had to come up with innovative strategies where we have been talking to our customers in export business so that thy seed to us part of what they retain what they get from their export process so that we alleviate this problem.
Should that happen then we go to massive, massive load shedding.</blockquote>
More: <a href="http://www.newzimbabwe.com/business-33381-Power+crisis+as+ZESA+fails+to+pay+Moz,+SA/business.aspx" target="_blank">New Zimbabwe</a>

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