Commercial Relations
Situation of HCB in the Market and prospects after the ownership change
Hidroeléctrica de Cahora Bassa, S.A., as an independent electrical power producer, pursues and will continue to pursue, with zeal and strategic excellence, its main objective, namely the generation, transmission and sale of electricity to its clients, contributing in a responsible and monetarising fashion to strengthening the national and regional economies.
The position and role of the company in the region emerged strengthened with the conclusion, in 2007, of the project to rehabilitate the south bank power station (REABSUL). This project made it possible to endow the company with conditions for the continued supply of electricity to its clients, in a time horizon of three decades, with sustainable levels of reliability and commercial and financial viability comparable with those of the best hydro-electric power stations in the world.
Commercially, during the period in question, the company has tried to consolidate the markets it has already won – selling electricity to Mozambique, Zimbabwe, Botswana and South Africa – and has also established commercial relations with potential clients – namely Malawi and Namibia.
The electricity sold to clients has been undergoing a noteworthy growth. By way of example, from 2005 to 2007, it rose by around 20%, at an average annual increase of close to 10%.
The share-out of the sale of power from HCB to clients in the region was as follows: South Africa (Eskom), 65%; Zimbabwe (ZESA), 19%; Mozambique (EDM), 15%; Southern African Power Pool (STEM) and Botswana (BPC), less than 1%.
The 2005-2008 period was of great importance for HCB in particular and for the country in general. In 2007, control over Hidroeléctrica de Cahora Bassa reverted to the Mozambican state, and it was in that same year that the region began to feel the effects of the exhaustion of the installed generating power: this was a real setback for the economy of southern African states.
The ownership shift allows HCB to be strategically aligned with the development objectives of the national economy, both through the possibility of increasing the availability of electricity for the country, and through contributing to reducing the state’s budget deficit, through its significant contribution to taxation.
The company has been playing a preponderant role in mitigating the effects of the energy crisis in the region. In April 2008, agreements were signed to supply additional electricity to Eskom, EDM and BPC from the 5th generator.