Effectiveness of revenue protection strategies for power utilities: The case of Zimbabwe Electricity Transmission and Distribution Company

Abstract

The majority of Zimbabwean citizens have no electricity and for those who have receive intermittent supply. Zimbabwe’s peak electricity demand is around 1,800MW and this is growing with the growth in the economy. The local installed capacity at the moment is around 1,200MW and hence we have a deficiency of 30%. Electricity shortages have a detrimental effect on the overall economic growth of the country. It has been noted that the available supply is not being used efficiently. Above the technical losses which are inherent to the power system, there exist non – technical losses such as electricity theft and fraud, billing errors, non - payment and these have contributed immensely to the on-going electricity rationing. In this dissertation, the researcher highlighted the different non-technical losses and suggested strategies which can help minimise these losses. The research was focussing on the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). The non-technical losses depend on the geographical structure, socio-economic factors and to some extent the political conditions of the country. ZETDC service area is quite huge and hence requires detailed research to come up with different innovative techniques for loss reduction. ZETDC has different categories of customers and as such the researcher proposed customised strategies for each group of customers and also considering the geographical area of the customers. The investment in new power stations is long term and takes a minimum of five years, with the situation in Zimbabwe going to improve by around 2015. These innovative approaches will help reduce the peak demand of electricity and will contribute in the reduction of load shedding in Zimbabwe.