Electricity Sub-Sector
The electricity supply industry (ESI) is dominated by government owned utility, namely Zimbabwe Electricity Supply Authority (ZESA) Holdings with its subsidiaries: Zimbabwe Power Company (ZPC) and Zimbabwe Electricity Transmission & Distribution Company (ZETDC).
ZPC constructs, owns, operates and maintains power generation stations for the supply of electricity. It currently maintains four coal fired stations which are Hwange, Bulawayo, Munyati and Harare thermal stations and one hydro power station, Kariba South Power Station.
ZETDC carries out the system/network operator function. It is responsible for the transmission of electricity from power stations, the distribution of electricity as well as it retailing to the end users. ZETDC also conducts trade at regional level through the Southern African Power Pool (SAPP).
There are some independent power producers who also operate through production for own consumption and trading
Who is Regulated?
ZERA regulates any person or private companies that operates an electricity undertaking which generates, transmits, distributes, or retails electricity for commercial purposes in excess of 100Kilowatts (KW).
How Are They Regulated?
ZERA issues the following licenses subject to applicants satisfying the terms and conditions spelt out in the relevant Acts:
- Generation license which authorizes the licensee to construct, own, operate and maintain a generation station for purposes of the generation and supply of electricity to any transmission, distribution or supply licensee who purchases electricity for resale to consumers. A holder of a generation license includes a generating company in Zimbabwe that is entitled under an arrangement approved by the Authority to sell power to Zimbabwean licensees or consumers
- Transmission and bulk supply licenses authorize the licensee to carry out grid construction, operation and maintenance of transmission of facilities within Zimbabwe and to carry out the operation of an electric power network
- Distribution and retail supply licenses authorize to construct , operate and maintain a distribution system and facilities including the connection of consumers for the purposes of receiving a supply of electricity, the installation, maintenance and reading of meters, billing and collection.
Validity of Licenses
All licenses are valid for a period of up to a maximum of thirty (30) years subject to satisfying periodic audits conducted by ZERA.
Regulatory Services
ZERA undertakes the following services in the electricity sector:
- Technical audits
- Compliance audit
- Tariff setting
- Research and development
- Investment promotion
- Maintenance of registration of licenses
- Promotion and awareness raising of energy efficiency and renewable energy technologies
- Light handed regulation on power projects which are less than 100kw