Factor Your Power Increase Fears into Your Plans: ZESA Tells Miners
The Zimbabwe Electricity Supply Authority (ZESA) has urged miners to incorporate the potential for electricity price hikes into their operational plans, as the utility continues to advocate for cost-reflective tariffs.
By Ryan Chigoche
For years, miners in Zimbabwe have expressed concerns about the high cost of electricity, which has become a significant burden on their operations. The escalating electricity prices are particularly alarming, as they directly impact the profitability of mining ventures.
At day two of Mine Entra, ZETDC General Manager Abel Gurupira addressed the audience attending a conference, warning miners to prepare for upcoming power tariff increases. He emphasized that these hikes are preferable to the frequent load shedding that has plagued the industry.
“We are solely reliant on thermal power at 12 cents, and that’s the same tariff at which we generate our power. If you add 14% to 12 cents, the costs will show that we are struggling, achieving a technical loss of 20% due to ageing equipment.”
Gurupira elaborated on ZESA’s financial challenges, stating, “US dollar obligations per month total US$92 million against the US$55 million we collect, with only US$45 million actually collected, leaving the balance payable at the interbank rate. You are not exempt from load shedding. Prepare for an increase in tariffs.”
To mitigate the ongoing power crisis, ZESA has initiated a series of short, medium, and long-term strategies. Recently, the authority has made strides by incorporating Independent Power Producers (IPPs) into the grid, adding 25 MW of capacity. Additionally, miner Zimplats has launched a 35 MW solar plant, contributing to the diversification of energy sources alongside other projects in the pipeline.
As part of a broader effort to enhance efficiency, ZESA is undergoing a restructuring process aimed at eliminating redundancies. This move is intended to streamline operations and improve service delivery. Furthermore, there is an increasing involvement of the private sector in Zimbabwe’s power industry, signaling a shift toward more collaborative solutions to the electricity crisis.
Despite these efforts, the future remains uncertain. Miners are encouraged to proactively assess their energy strategies in light of the anticipated price adjustments and continue advocating for sustainable energy practices.