Tuesday, April 29, 2025

ZESCO directed to stop providing free electricity to its employees

Share

Zesco Head Office
Zesco Head Office

The Energy Regulation Board (ERB) says ZESCO has been directed to comply with its decision of ensuring that parastatal’s employees begin paying for electricity just like any other consumers.

ERB financial analyst, Simweemba Buumba, says ZESCO has in the past ignored similar directives but hoped that this time around the company adheres to the directive given by the board.

Mr Buumba who was speaking at an ERB public meeting at crystal lodge in Choma yesterday said ZESCO had a policy which allowed its employees to enjoy free electricity but that this was defeating the company’s efforts to be financially viable.

He said as part of measures to ensure the new introduced tariffs are cost reflective, ZESCO employees would begin paying for the service.

He was responding to concerns raised by members of the public on why ZESCO employees continued to enjoy free electricity at the expense of other consumers.[quote]

He said among the key performance indicators given to ZESCO by ERB are that of ensuring that losses were drastically reduced by 2010.
He said the newly introduced tariffs are not only cost reflective but will improve the performance of ZESCO.

Mr Buumba said ZESCO is also expected to meter all its customers as part of measures to reduce on losses.

ZANIS

64 COMMENTS

  1. When ZESCO gets sold to some foreign country for example in my opinion to a British company so that they will be more responsive to the complaints of zambian customers. It will create a cash flow in the sambian economy (for the Gorvenment) and ZESCO will be cheaper to consumers, because there will hopefully more competition. Can Someone agree with me please?

  2. Yes the baggers should also pay there is nothing for free ba ZED. Infact this electricity increase will cause a lot of Zambian to survive without power it is too expensive. Very soon compounds like misisi or jack will be dark continents because people will not afford to pay for Power. Something has to done on this electricity increase.

  3. MMMMMMM bane, so you mean to say that all this time these guys have been having free services from the company? This is something strange, ati uwamwibala, not in this era. Let everyone pay the bills, you will see how zambia will develop, not only with Zesco, it should be extended to all companies. It used to be like this in the mines where water, electricity were all paid for by the company and see where it is now. The so called prepaid usage system in Zesco,is the best, for either employee or not. Honestly how many people work for Zesco? And how much money could have been realised from these employees had they paid their rates? Vamahala vinata bane

  4. LT are you sure about this story. Is it not supposed to read “ZESCO DIRECTED TO STOP PROVIDING FREE ELECTRICITY TO RB’s Farm in Chipata , George Kunda’s House, State House and Government Ministries?” Please check again please..

  5. The ERB should not only issue directives, they should also make sure that consumers are compensated for the inconviniences caused by ZESCO.

  6. What does matter anyway. they will say we shall be deducting from the salaries and it will be the same story of not paying. Nipa Zed

  7. WTF? All this time they havent being paying and they get high salaries. Instead putting all the load on non Zesco employee with all their incompetent and unreliable services. Unbelievable pa zed, realy unbelievable honestly

  8. ERB should come up with a monitoring mechanism to ensure that this time around, the directive is adhered to. Past directives have been ignored for the simple reason of lack of this same monitoring mechanism on the part of the ERB.

    # 5 Government ministries do pay for electricity, water and telephone bill although not consistently thus the ever increasing amounts owed to the utility companies.

  9. I recall sometime back my brother used to work for Zamtel and he was being billed for his phone line so why is it s special case with ZESCO?
    Yeah these guys should equally pay for the electricity – PERIOD!

  10. I personally think that the directive from whoever is not only misplaced but also unrealistic. Leave the employees alone. Its one of the incentives exclusive to Zesco stuff.
    Making them pay tarrif as we do is not good at all and can lead to alot of misbehaving on the part of Zesco stuff. Uumomba mwibala, alya mwibala. Do’nt think making employees pay for the service will improve the Zesco coffers. Its good and proactive management. Stop being jealous and call for real issues.
    Anyways this appears to me like a Union issue.
    FACT: Zambia has extremely BAD managers,MDs and CEOs period.

  11. Dunder heads! What took you so long anyway. Charge the chaps. Infact charge them double to make up for arrears! They should also be smiling when the powercut team arrives at their doorstep hahahahahaha!

  12. Iam glad it has finally come to this. I initially thought Zesco employees ahd a staff rate but was shocked to hear that they never paid anything. How did I know? A friend moved into a house formally occupied by a Zesco employee it took over six months ..due to Zesco inefficiency before they started billing him. So he had six months of no bills as it was still regarded as being occupied by the Zesco employee

  13. Hold your fire. It is common for employers to offer incentives to employees. many companies do it as a way of retaining skilled manpower.

    To avoid confusion, one way forward is for Zesco to offer such incentives in another form e.g allowances for energy. Then the employees can use that money to pay or part-pay for electricity.

    Check other companies, even banks. You’ll find that these are things that attract skilled man power. They dont even cost a lot. How many zesco employees are there? How much will be saved if they paid like everyone else. Very little. The cost of brain drain may outweight all that.

    Any employer worth his sort cares for his labour force. Labour is the most important ingredient to business performance.

  14. #16 Contd

    To attract and retain high quality labour some companies offer

    1. accommodation – company house or rentals paid by co.
    2. Transport – fuel or vehicle or both
    3. SDchool fees for your children
    4. servant or and security guard allowances
    .5 Paid holidays or vacation
    6. etc

    dependening on your level and how much the company must have you.

    A lot of us have enjoyed benefits like these both in Zambia and overseas. Be a highly skilled person and see what companies will out there are willing to offer you.

  15. Ba Kaya, Teta is right now admitted to the Intensive Care Unit at the UTH. Unfortunately if u want to visit him, u’ll not be let in coz there’s a clear & vivid notiice on the entrance to the ICU reading: “No visitors allowed for Hon. Ben Tetamashimba”!
    I wonder what the man is suffering from for him to be quarantined! Had it not been for the alert media houses we’ve in the country, few of us would have known that the man was stealthily & secretly brought back into the country from S.A’s morning side’s clinic only be admitted at UTH again. But the question is; Why make it secret? What has become so sensitive about his illness? Everyone can fall sick anytime, why not Ben? Is it the contagious Influenza? The newspapers suddenly have nothing to write about coz our Ben is ill. We…

  16. I do not see what is wrong with a company helping its employees and keeping them motivated. After all they are providing a service to the company. The company can simply pay for the electricity with the salaries. ZESCO needs motivated employees and this proposed action will not help much.

  17. #18, UK-ZedObserver ,

    It is okay to give incentives and bonuses to emploees, but if the company is going under then you have to forgo some of them.

  18. What a shame. That is another institution whose reason for its existence I have failed understand. So what change will it make if employees no longer get free electricity? Are we going to see less of back-outs? How much is ZESCO going to save out of that change as compared to the loses they incur from police camps and townships like Matero or Buchi? ZESCO just has to put in measures to increase efficiency? I have never heard of ZESCO coming with an initiatives such promoting alternative energy or the use of energy serving bulbs, One would have thought ZESCO could even go into partnership with electrical-product companies like Philips where they could make good money even by innovation in energy serving products.

  19. #22 We Can

    I hear you and you are very right. I agree with you of the need to tighten belts.

    I just hope ERB is not trying to save ngwees while spending Kwachas. These incentives probably dont cost the company that much.

    In any case, if via internal surveys Zesco understands that the incentive is a huge source of motivation, the comany may try to sustain that motivation thru other means, e.g – energy allowances via payroll etc.

    Free electricity is being politicised.

  20. #18 UK-Zed what you are talking about is now history in Zambia. Very few international companies are able to provide good condition of service for their staff. In the olden days as long as you are in employment one was entitled to housing allowance, transport, lunch and so forth and this is not the case any more. Workers are suffering in Zambia one is paid as low as K500,000.00 p.m. as salary. Survival pa Zed ni nkondo. So those things you are mentioning i dont know when you left Zambia. Ala chiletukalipa especially when you guys out there muleponta.

  21. #24 Dongo na Sundu. This may interest you – from bbcnews.co.uk Mon 31Aug09

    It is light, bright and has been around for 120 years. But from Tuesday the 100 watt bulb bows out from Britain.

    Under new EU rules the manufacture and import of 100 watt bulbs and all frosted bulbs will be banned in favour of the energy-saving variety.

    According to the Energy Saving Trust, compact fluorescent lamps (energy-saving bulbs) use 80% less electricity than standard bulbs.

    They could also save the average household £590 in energy over their lifetime of between eight and 10 years, and if all traditional bulbs were replaced, the carbon saving would be the equivalent of taking 70,000 cars off the road

  22. #26 Insaka

    Tweleleni. Forgive us.

    If possible what needs to happen is for employers to pay decent wages. I dont know how this comes about in an economy – I am not an economist or whatever profession deals with that. It’s a pity a lot of foreign investment is coming from China where wages are low.
    May be those who know better about these things can say something.

  23. Right on #16. Most if not all companiez that manufacture goodz and or sell some form of service, have some special arrangement when it comez to dealing with own employeez. I know of beverage companiez that give free softiez/booze to workerz, only they declare that and pay tax on the same. Zesco should just declare the value of the “free” energy uzed by workerz and pay tax. The incentive iz good and Zesco should not be harrassed.

  24. Free electricity for employees is not a bad idea but ensuring that GRZ pays ZESCO for its over consumption of electicity would help. I have been to many places where GRZ employees do not even switch security lights off throughout the day and this is year in year out as they don’t pay for it and don’t see any sense in helping conserve power. GRZ fat cats (Ministers and Directors) must be made to pay and not ordinary ZESCO workers on very meagre salaries and /or tiny houses where consumption is negligible. ERB – think big and not in your pants, please.

  25. These incentives are not only in Zesco, London Transport e.g offeres it employees, Tube and Bus workers free transport , their dependants also benefit, this is called motivation.

  26. #28, Here in the UK there is what is called minimum wage, e.g £3.50/hour, so an employer can not pay its workers below the minimum wage. The Govt has to set the Law , acceptable wage and all the employer must adhere to it, is not the employer will be punshed by a fine etc.

  27. HM Revenue & Customs (HMRC) involvement with the national minimum wage?
    The role of HMRC is to enforce the national minimum wage. they do that by responding to complaints made about employers suspected of not paying the minimum wage, and by visiting a sample of employers about whom no complaints have been made, to check that all employers meet their obligations under the National Minimum Wage Act.

  28. Typical African thinking. If it is done by London Transport then it is good. The point here is that if you run a bakery and you cannot make enough bread to supply all of your customers and your ovens are falling apart, it does then not make sense to be giving free bread to your employees……

  29. Talking about minimum wages, the Labour laws in Zed are weak. Complaints have gone to labour office and these so called investors are really exploiting workers. The only investors we have in Zambia are Chinese and Indians. The system just has to change.

  30. My sister works in/for the Hotel.She has 7 free days to sleep in the hotel with complimentary breakfast.Relatives like me pay half price.Given a chance,i would have only given free electricity to employees who are not in management positions,or those that earn less than K2m.

  31. No 32 incoherent rambling ideas should be restrained from . The UK ’s economy and labour markets can not be compared to the zambian. Go to lusaka run a business and pay minimum wage to the employees you are refeering to see if you will even break even.

  32. #16 & 18 UK-Zed Observer

    Sorry to be your kill joy but I hate big time Charlies.

    1. accommodation – company house or rentals paid by co.
    2. Transport – fuel or vehicle or both
    3. SDchool fees for your children
    4. servant or and security guard allowances
    .5 Paid holidays or vacation
    6. etc

    Other than fuel and a car most of what you put down is tosh.

    Paid holiday yes but there is always going to be stuff like if you work for say 2 years. Even then it`s just the air fair not what you go to spend. I have enjoyed this facility before.

  33. #30 The Realist

    That’s an importatnt observation.

    ERB should also compel Govt to pay Zesco bills. The loss and waste by Govt employees may be is far much bigger than what is consumed by zesco employees.

    May be GRZ gives its employees free electricity. Certainly civil service wages can do with cushioning like that.

    There are also a lot of illegal power connections. There’s a lot of zesco money lying around uncollected – even from Govt and its institutions.

  34. #37 I meant in the west of course. I have a friend who is a regional manager for Sky but still pays for it. This idea of giving free this and that was the muzungu idea to appease Zambians.

    No wonder some people were talking about company houses or the company paying rentals! What nonsense! It`s reason Zambians still think they have to be paid terminal benefits when the are fired.

  35. What I know is that originally workers at power stations were entitled to free electricity. By the very nature of electricity generation most of the power stations are in remote areas. There are limited education, social and education facilities at these places. I take the free electricity at these power stations as some sort of hardship allowance. Let people not begrudge the workers this little incentive.

  36. Good move by the Board. The Billing systems both prepid and postpaid should reflect the true values which includes thousands of Zesco employees. Some of these Zesco employee are abusing this free services and they have installed power at their commercial properties and deprive the state of the money.
    This change will help clean up the Billing system. Zesco can then start selling a portion of their Power units to their employees at employee rates. That will curb abuse and protect envirolment and revenue

  37. Life is full of ups and downs, how I wish teta was flown back to zambia when health workers were still on go slow. We were going to see who was going to attend to him. Let the govt tell us how much was spent on teta in medicals fees alone during this short time he was in south africa not to mention theflights etc.

  38. Awe kabalelipila bushe energy ingila free mumayanda yabo? After all bala bikila nabanabo utu ma short cut umuntu alishita ama units but ta yenda.

  39. As Africans, Zambians in particular, it is not prudent to talk ill of somebody sick like Teta. However the trend should change. Not only politicians should be flown out for treatment but who ever patient the hospital authorities recommend to go for special treatment. Otherwise let us use the money spent on such services to improve the facilities at our Local Hospitals to benefit all Zambians.

  40. It does not matter which ever hospital one go, if your time to die come no man can averted , We see and hear it every day even in the USA , where if the Rich die regardless of the sophisticated medical advances. This the reason why our political leaders should that life can never be bought , they will drain the govt coffers but still die. It is time Zambia people, stop attending funerals for politician they should be escorted to the gravel hero when they made people suffer. Let the prisoners and police bury them. No Church should even pretended to have service for them. I sound tough but true, that Zambians are tired of seeing evil perpetuated by our leaders , we have respected and honored. Unless they want us to go to Afghanistan and come back and teach them a lesson. But that is not k

  41. But that is not KK inspired us…. one Zambia one nation is the motto for Zed. Otherwise let share it and rule ourselves by regions maybe will be better.

  42. Let Zesco workers start paying period. Their relatives , children and their neborz miss use electricity. If it means giving them incentives , then give them fixed allownce for electricity.

  43. Whta ZESCO needs id restructuring. I am aware that almost any employee at zesco has a relative working there. As for the boses- an entire family of brothers, sisters, cousins, nieces and so forth are all working for zesco.

  44. i think mushota is one of the bored male LT bloggers seeking attention, her post are silly n quiet imature to be real..so ba mushota get a girl friend n you seem to be so in love with UK BT this,BBC that….T MOBIL this LONDON TRANSPORT that.. awe sure, if it was here in london, kanshi fwebali kulusaka twacula….

  45. #27 UK-Zed Observer

    Thanks, I read that about that in metro. But there is some resistance in some quarters who think energy saving bulbs are pollutants because of their having some mercury. Others say they are not bright enough. So where you think you are doing something better others think otherwise – a case of Sod’s law perhaps.

  46. ZESCO has the most progressive pay system in Zambia. E.g. they do not pay medical expenses for employee or family, they do not pay for children’s education as they realised many years ago that these are a huge cost and mostly abused as at Zamtel where one may think that they are underpaid and yet they have a huge bill in terms of such employee facilities. The ERB should not throw stones at ZESCO as they live in a glass house. Ask them what ridiculous things they pay for their employees, I have seen their employees get receipts to be refunded just for buying panadol in a pharmacy, a clear recipe for abuse. Somebody should scrutinise ERB employee benefits and you will be shocked!

  47. YES LET THEM PAY, ONLY MAY BE THEY WILL APPRECIATE WHY CUSTOMERS NEED TO BE RESPECTED AND GIVEN A BETTER SERVICE. YOU SEE, I PAID A LOT OF MONEY TO CONNECT POWER TO MY NEW MANSION LAST YEAR, BUT THE CHAPS KEEP GIVING ME FAKE EXCUSES DESPITE HAVING MET THE CONTRACT REQUIREMENTS. WHAT IS BUFFLING IS THAT THERE ARE OTHER CUSTOMERS WHO WITHIN THIS SAME PERIOD ARE ALREADY GIVEN POWER. I HAVE FOUND A GOOD NUMBER OF PEOPLE WHO PAID MUCH LATER AND THEY ARE INSTANTLY CONNECTED. FOR ME THEY HAVE JUST BEEN DRAGGING. I AM NOT SURE WHETHER ITS A BRIBE THAT IS AT STAKE, BUT I VOWED I WILL NOT PAY IT.

  48. #1
    Privatization is not really the best route to solve ZESCO’s problems, mainly becoz of the hike in tariffs that will be associated with such a move. Most Zambians simply just won’t afford electricity. Furthermore, any “private” entity that takes over ZESCO would aim at maximizing profits. This will in part entail the company focussing its resources towards the more “lucrative” or productive sectors, at the expense of the poor sectors, becoz in those sectors, the cost of generating electricity, will by far, outweigh the benefits! In the long run, this will affect infrastructure development and inhibit economic growth of certain sectors of the economy such as agriculture. Prudent capitalization through cost-effective borrowing, and expansion are the way forward for now!

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading