By Patience Gondo
The Government has opened the electricity retail and distribution sector to private companies, a major policy shift aimed at expanding access to power, improving efficiency and reducing costs for consumers across the country.
This effectively ends power retailing monopoly by the Zimbabwe Electricity Supply Authority (ZESA).
In a statement Friday ,the Zimbabwe Energy Regulatory Authority (ZERA) said the decision, was approved by Government, to allow private players participate in the distribution of electricity to households and communities in line with efforts to achieve universal access to power by 2030.
ZERA, working with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), said the move seeks to attract investment into electricity secondary distribution infrastructure, especially in under served areas.
The development is expected to ease the persistent electricity shortages that have long affected homes and businesses, while ensuring more reliable and affordable power supply to communities.
“Private companies will be licensed to distribute and retail electricity in under-served areas, complementing the work of ZETDC,” Statement reads.
The new model will require potential licensees to demonstrate both technical and financial capacity to develop, operate, and retail electricity services in line with the Electricity Act and existing regulatory standards.
ZERA said the arrangement would also allow private firms to work hand-in-hand with ZETDC in providing backbone electricity infrastructure such as transmission and substations in new residential developments.
According to the energy regulator, the initiative will bring several benefits, including improved electricity supply and service delivery, increased access to power in previously marginalised communities, and reduced operational costs.
ZERA said integrating renewable energy sources into the national grid will be part of the new model, supporting sustainable power generation.