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Due to the Apollo I refurbishment: HCB revenues may go down by as much as 10 percent
Due to the Apollo I refurbishment: HCB revenues may go down by as much as 10 percent
The Cahora Bassa Hydroelectric Complex (HCB), the largest energy undertaking in Mozambique, foresees a decrease this year of eight to ten percent in its revenues, due to the reduction in power supplied to South Africa. This information was disclosed in Chidenguele in the District of Mandlakazi in the Province of Gaza, by the Chairperson of the Board of Directors of HCB, Paulo Muxanga, on the margins of the V Co-ordinating Council of the Ministry of Energy, which came to an end there yesterday.
Paulo Muxanga didn’t disclose by what amount the supply of power to South Africa is going to decline. He explained that this situation results from the fact of the Apollo sub-station being in refurbishment since last year. While the construction works are under way, one cannot transport the large quantities of power that one would desire, thus limiting HCB’s billings.
“Production from HCB is at the same levels. There is likely to be a small decrease because the Apollo sub-station has been in refurbishment and we cannot bring as much power to market as we would wish. We had that problem last year, and even this year the sub-station has had a lot of interruptions”, he explained, adding that “if South Africa doesn’t manage to receive the power, we cannot bill it”.
South Africa is the largest buyer of electrical power from HCB, consuming 1,300 megawatts. Through the Apollo sub-station, which starts in the Province of Tete and goes to South Africa, HCB distributes power to the southern region of Mozambique, as well as supplying 150 megawatts of this resource to Zimbabwe.
The reduction in HCB’s revenues will be exacerbated by the fact of neighbouring Zimbabwe, which receives 200 megawatts, having a high level of debt for consumption of energy produced in Mozambique.
The amounts payable to HCB by Zimbabwe were not disclosed. However, Paulo Muxanga is of the view that this country’s debt “is significant”. “The pace of payment of Zimbabwe’s debt is a matter of concern. It is a significant and worrying debt, but every week they pay between 500 thousand and 700 thousand dollars, and that comforts us a little”, he said.
He added that the supply of power to Zimbabwe has been regular, because an agreement exists and they have attempted to fulfil it, in addition to continuing to consume a great deal of power.
HCB’s principal clients are the publicly-owned firm Mozambique Electricity (EDM), which purchases 400 megawatts, Eskom, the South African producer and distributor, which consumes 1,300 megawatts, and ZESA, Zimbabwean producer and distributor of electricity, which benefits from 200 megawatts, distributed directly from the Tete-Zimbabwe distribution line, and the remaining 150 via the Apollo sub-station. In addition, HCB supplies up to 70 megawatts of power to Botswana.