By Donald Nyarota.
MUTARE. (News of The South) – Government will cut 30 percent of electricity arrears ahead of by-elections scheduled
to take place on June 10, News of the South can reveal.
This announcement was made over the weekend by Minister of Energy and Power
Development Dr Samuel Undenge during a campaign rally for Esau Mupfumi Zanu PF
in the Dangamvura/Chikanga by election.
Dr Undenge, who is also Zanu PF acting provincial chairperson, said government
has made a commission to issue debt redemption to ratepayers who settle 70
percent of their arrears.
“We understand that ratepayers have a huge debt. But if you come and settle your arrears we will apply debt redemption.
“The redemption will apply to those who pay up to 70 % oftheir outstanding electricity arrears” he said.
The imminent debt redemption comes at a time when the country’s sole power
utility – Zimbabwe Electricity Supply Authority (Zesa) is facing serious
financial challenges.
ZESA has also come under fire for granting its workers and pensioners
free electricity worth over 10 million monthly, despite viability
challenges.
This debt redemption come in the wake of a similar measure issued ZANU PF ahead
of the July 31 polls where millions where written off for commercial farmers
and residents. Municipalities were also ordered to scrap off accumulated arrears
The debt cancellation plunged the Zimbabwe Electricity Supply Authority
(Zesa) and local authorities in a financial fix.
Fears already abound over this move believed by analysts as populist measure
to drum up political support, devoid of economic rationale.
Freeman Bhoso of Zimbabwe Natural Resources Dialogue Forum said whenever
government makes such an announcement it is after people’s votes.
“Why is it that such anouncements are made just before election? The answer is
simple, government wants to hoodwink voters. This country is now a banana
republic where populists plunder with impunity.
“Such moves actually encourage residents to default paying their dues where is the economic rationale in that?” he said.
Zimbabwe Electricity Distribution Company managing director told a
parliamentary portfolio committee that the power utility is owed close to Us$1
billion by government departments, parastatals and a number of local authorities that are failing to settle their bills.
“As we speak domestic customers are sitting at more than $299 million
which is 30% of the total debt but at least we are collecting that at a
prescribed rate since most of them are now on the prepaid platform,” he said.
Power generation is also at an all time low as ZESA is failing to meet the peak
demand of 2 200 mega watt, as persistent power cuts continue plunging households
in darkness while capacity utilisation is compromised.
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