Miners Accept ZESA Prepaid Plan, Concerned About Economic Tariff
The Chamber of Mines of Zimbabwe (CoMZ), representing large-scale miners, has indicated that miners are prepared to adopt the Zimbabwe Electricity Supply Authority’s (ZESA) prepaid electricity system. However, their primary concern is whether ZESA can offer a reliable and affordable electricity supply, reports Mining Zimbabwe.
By Rudairo Mapuranga
Speaking to Mining Zimbabwe, Chamber of Mines of Zimbabwe CEO, Isaac Kwesu, stated that many miners have already been using prepaid power. The main issue is securing power at an economical tariff, not the switch itself.
He explained that discussions between the Chamber and ZESA aim to ensure a smooth transition from postpaid to prepaid, addressing potential concerns such as cost and cash flow.
“It’s not new that ZESA is introducing prepaid metering. Many of our mines are already on that platform. The main concern is securing power at an economical tariff. We are working to ensure a smooth transition without creating issues around cost and cash flow, including addressing deposits and prepayment timelines,” Kwesu said.
ZESA recently announced that all medium and large commercial, industrial, tourism, and mining customers still using postpaid billing must switch to prepaid by October 1, 2024. The utility expects this shift to help address the Zimbabwe Electricity Transmission and Distribution Company’s debt of over ZWG$ 5.7 billion, with the industry and mining sectors contributing significantly to the debt.
Due to this debt, ZESA has struggled to import power, further exacerbating Zimbabwe’s energy challenges, worsened by low water levels at Kariba Dam and limited output from the country’s thermal stations. ZESA believes the prepayment system will improve customer energy management and service delivery.