Government seeks to bring sanity in the energy sector by dealing with companies which are holding power generation licences for speculative purposes instead of supplying electricity to the national grid.

Zimbabwe Energy Regulatory Authority (ZERA) Acting Chief Executive Officer Mr Eddington Mazambani said they are aware of Independent Power Producers who are getting licences but instead of abiding to the licence terms and conditions these companies are now selling them to foreign companies for quick profits.

Mr Mazambani revealed this when he appeared before the parliamentary portfolio committee on energy and power development recently.

“We have given licences to companies to produce about 8000 megawatts but we have realised that many of these are being sold for around US3 million dollars,” he said.

Parliamentary portfolio Committee on Energy and Power Development member Zvimba North  Legislator Honourable Marian Chombo quizzed the ZERA boss on the recent awarding of an energy licence to former Eskom Chief Executive Officer Mr Matsehla Koko.

“Did you do any due diligence when you awarded a licence to Mr Matshela Koko from south Africa given his past?” she questioned.

Mr Mazambani responded, “Mr Koko is not a listed person and the award of the licence was done after he presented his investment case to ZERA and we cannot judge him because he is not a corporate delinquent in his home country”.

According to Mr Mazambani, Hwange power station is constantly breaking down because it is now old requiring a huge capital replacement outlay whilst at 475meters of water level, Kariba dam is only 3 meters away from ceasing to generate electricity until the start of next rain season.