No more free electricity as ZESA orders heavy consumers to get prepaid meters

By Staff Reporter

ZESA Holdings has been directed to roll out prepaid and smart electricity meters across all sectors of the economy by October this year, in a move aimed at strengthening revenue collection and curbing non-payment, especially among large electricity consumers.

The new directive will see prepaid and smart meters installed in all Government buildings, parastatals, commercial farms and other high-usage institutions, many of which have been operating under post-paid arrangements and accumulating huge debts.

Prepaid meters allow consumers to pay for electricity before use, much like a mobile airtime top-up system.

Smart meters, on the other hand, provide real-time monitoring of electricity consumption and enable remote billing and disconnections.

Both systems improve billing accuracy, eliminate estimated charges and ensure payments are made upfront, thereby enhancing Zesa’s ability to collect revenue consistently and predictably.

Speaking during an energy sector briefing in Harare on Wednesday, Energy and Power Development Minister July Moyo said the metering initiative is part of broader Government reforms to ensure Zesa operates on a financially sustainable model backed by a cost-reflective tariff.

“Cabinet has now said Zesa is part of our reforms,” he said. “Go and do smart metering and prepaid metering in the whole economy so that there is predictability of income. With this cost-reflective tariff, our energy demands will be met,” said Minister Moyo.

He criticised the current system in which households, the smallest consumers, are largely on prepaid meters while larger institutions continue to enjoy post-paid arrangements, often defaulting on payments.

“It is not fair. So, there can never be this excuse about, ‘Well, we have no money.’ We have no money, yeah,” Minister Moyo said, indicating the urgent need for financial discipline and equality across all sectors.

By October, he said, all major electricity consumers — including Government buildings, parastatals and commercial farms — must be on prepaid or smart meters.

“By October, Zesa will put farmers on prepaid, Government Ministries on prepaid and parastatals on prepaid,” said Minister Moyo.

He said domestic consumers, who have the highest compliance rate due to prepaid billing, continue to carry the burden of supporting Zesa’s cash flow.

Prepaid metering has significantly improved compliance among households, ensuring that Zesa receives payments before electricity is consumed, thus eliminating arrears and making revenue collection more efficient.

“This is in order to make sure that there is access to international finance because they (investors) can see that the collection is there,” Minister Moyo said, stressing that reliable and transparent billing is a key condition for unlocking foreign investment in the energy sector.

Over the years, Zesa has battled to recover debts from government departments, irrigation schemes and large-scale commercial users, hindering its ability to invest in critical power generation, grid maintenance and network expansion.

– Herald