By Rex Mphisa
THE Government has approved the ending the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to bring on board the private sector in unserviced areas.
Research says in Zimbabwe, roughly 62% of the population had access to electricity in 2023. However, access is uneven, with 87.4% of the urban population having grid access compared to 23.4% of the rural population as of the 2022 census.
While a majority of households are connected to the grid, a significant portion of the population also uses off-grid electricity, with 38% of the population having no access to electricity.
Since independence in 1980, supply and distribution of electricity has been monopolised by ZETDC, previously called Zimbabwe Electricity Supply Authority (Zesa).
This week Cabinet considered and approved proposals for the participation of the private sector in the distribution and retail of electricity, according to minutes of their meeting released to the press.
“The electricity sector requires significant investments for power grid upgrades, expansion and modernization, and the financing had been borne mainly by the Government of Zimbabwe. As such, the opening up of the electricity supply industry to private sector involvement is being necessitated by the need for huge investment as well as improved efficiency and the integration of renewable energy sources,” said the minutes.
“Private sector involvement will improve services, reduce costs to Government and assist in the integration of renewable energy sources. The participation will also facilitate rapid infrastructure development, improve revenue collection and enhance operational efficiency,” it said.
Government is now expected to act with speed, to enact enabling laws following approval by Cabinet for the active participation of the private sector.
“In this regard, the Electricity Act (13:19) (Section 44) allows for the licencing of secondary electricity distributors. The Zimbabwe Energy Regulatory Authority Act [Chapter 13:23] empowers ZERA to licence secondary distributors and retailers, while the Zimbabwe Investment and Development Agency Act [Chapter 14:38] facilitates investor participation under terms that favour the national interest,” said the minutes of the Cabinet.
It said Cabinet agreed that a model should be implemented whereby electricity reticulation is provided as part of the cost of stands in new residential areas.
“Under the model, ZESA will provide the backbone in the form of a transmission line and a sub-station. Through a Statutory Instrument, a compliance certificate will only be issued to a property developer upon incorporation of electricity backbone infrastructure into residential developments.
“The model will enhance property value and improve its attractiveness. Licencees will be permitted to distribute electricity to communities upon demonstrating both technical and financial capacity to develop, operate and retail electricity.”
Approved licencees will also be required to demonstrate compliance with regulatory standards and guidelines, said the minutes.
The nation is further informed that the Zimbabwe Electricity Transmission and Distribution Company will partner with banking institutions for the electrification of communities.
The banks will then recoup their costs through ZETDC’s billing system, under the Advanced Net Metering Strategy, the private sector will provide electricity to off-grid suburbs utilising solar, with a backbone infrastructure expansion component that will ensure connection to the national grid in the long term.
The private sector investors will recoup their costs through the ZETDC prepaid billing system. The model will facilitate expansion of electricity access to undeserved areas and contribute to the goal of universal electricity access by 2030.
Zimbabweans said they have are uncomfortable having ZETDC superintendent over private players providing distribution lines and modes which itself failed spreading across the country.
“Invitation of, and approval of private players is a sign ZETDC failed the country and having them supervise is a joke, ” said an engineer speaking on co