ZETDC Announces Prepaid Meter Migration for Commercial Sectors
The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) is facing a staggering debt of over ZiG5.7 billion, prompting the utility to implement prepaid meters for medium and large-scale customers, including those in the manufacturing sector. This measure aims to enhance revenue collection and alleviate the financial strain on the power utility.
Recent figures from Zesa indicate that industry, commerce, and mining account for a significant portion of the outstanding debt, with industry alone responsible for 50% and both commerce and mining contributing 12% each. In contrast, domestic users, who owe a mere 1%, are often the hardest hit by power outages, despite paying for their electricity in advance.
The shift to prepaid meters is expected to incentivize medium and large-scale customers to explore alternative energy sources, such as solar power, thereby reducing reliance on the national grid. ZETDC has announced that it will migrate the remaining postpaid accounts to a prepaid system, effective October 1, 2024.
In a statement regarding the transition, ZETDC noted, “The migration of domestic and small business customers from the postpaid to the prepaid platform has progressed well, with 95% of customers now on the new system. This notice serves to inform all medium and large customers in the commercial, industrial, tourism, mining sectors, and institutions that they will be required to prepay for their electricity consumption.”
Dr. Sydney Gata, executive chairman of Zesa Holdings, highlighted the detrimental impact of outstanding debts on the utility’s operations. “We are owed more than ZiG$5.7 billion by several customers. Despite the supply shortages, we have had to resort to exporting electricity during non-peak hours to raise some foreign currency to meet our obligations,” he stated.
Dr. Gata also pointed to vandalism as a contributing factor to ongoing power outages, exacerbating the challenges faced by the utility in providing reliable electricity to consumers.
As ZETDC moves forward with the prepaid meter initiative, industry stakeholders will be closely watching its impact on electricity consumption patterns and the overall financial health of the power utility. The transition could signal a shift towards more sustainable energy practices as businesses seek to mitigate their dependence on the national grid.
