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Eskom denies cutting Zim power supply

3rd February 2004

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Power utility Eskom denied yesterday that it cut electricity supplies last week to the Zimbabwe Electricity Supply Authority (Zesa) for non-payment.

"At no point in the previous week did Eskom switch off power supply to Zesa, nor did we even consider switching off power supply to Zesa," Eskom said in a statement.

The Zimbabwean state-controlled Sunday Mail was quoted as reporting that South African and Mozambican power utilities demanded up-front payment for supplies.

It said Eskom switched off electricity to Zesa for two days for non-payment.

Zesa has been importing electricity from Eskom since 1996.

The account went into arrears in 1999 as a result of a shortage of foreign exchange reserves, the Eskom statement said.

"The situation improved in 2001, when Zesa met its obligations to pay all current accounts on time. Furthermore, the Zimbabwean utility substantially reduced outstanding amounts in line with the account normalisation agreement with Eskom".

Zesa met its obligations on current accounts for the better part of 2002, Eskom said.

But, foreign exchange reserve shortages in September 2002 prompted Zesa to re-enter into dialogue with Eskom.

A meeting was held last March, where a new repayment schedule was considered.

"At this meeting, the Zesa delegation reaffirmed its commitment to servicing their debt to Eskom with the view to settling the outstanding account and arrears in the shortest possible time," Eskom said.

"We remain confident that the outstanding account will be settled".

Eskom spokesperso Fani Zulu would not disclose the amount owed. – Sapa.
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