Dear editor,
ZIMBABWE BEGINS TO REBUNDLE POWER UTILITY
The Zimbabwe Electricity Supply Authority, whose official name is ZESA Holdings Limited, is a state-owned company whose task is to generate, transmit, and distribute electricity in Zimbabwe.
Government unbundled ZESA in 1997 and later in 2006 and created a holding company to oversee the unbundled entities.
The unbundling process created five companies namely Powertel Communications, Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Zimbabwe Power Company (ZPC), Zesa Enterprises (Zent) and Zesa Holdings.
GOVT REBUNDLES ZESA
In 2017, Government agreed to rebundle all Zesa group companies into one company as part of its public sector enterprise reform programme.
The unbundled units experienced high operational costs as they all created new top heavy management structures and also created separate departments such as marketing, human resources, accounts and public relations.
Further local authorities, which were tasked to distribute power accumulated huge unpaid bills.
Cabinet resolved to merge the units into a single integrated company.
By 2021 the rebundling of Zesa entities started following the engagement of a consultant to assess the mechanisms available to restructure the power utility.
Government has started to amend the Electricity Act that would take into account of the new structure, while a consultant is being sought to advise the government on the best structure for the rebundled utility.
Emmanuel Mwamba
Author
