The Zambia Electricity Supply Corporation (ZESCO) has urged the government to consider settling the over 200 billion kwacha debt it owes the power utility company through unpaid bills.
ZESCO managing director Cyprian Chitundu says the outstanding debt owed by the government once paid would enable the company also fulfill the tax obligations that it is supposed to meet.
Mr. Chitundu says there is also need for the long term supply contracts that ZESCO has with the mining companies in the country to be relooked at adding that the current tariffs being offered to the mines are not cost reflective.
The mines consume 50% of the total power that ZESCO generates.
Mr. Chitundu was speaking during a presentation at a workshop for Members of Parliament in Lusaka today.
And Mr. Chitundu has further told parliamentarians that the introduction of the prepaid meters has led to a reduction in power distribution losses from 30 to about 13 %.
He added that up rating of the selected hydro-power station was also progressing well and that a contractor has also moved on site at Lunzuwa hydro-power station in Mbala district.
Mr. Chitundu further stated that ZESCO has also advertised for a contract to up rate Musonda Falls hydro-power station adding that other hydro-power stations to be up rated include Lusiwasi lower and upper Hydro-power stations, as well as Chishimba Falls.
And speaking during the question and answer session Gwembe Member of Parliament Brian Ntundu urged ZESCO to engage government and ensure that the bad contracts that ZESCO has are terminated.
The parliamentarian noted that the government should therefore move in as did on the concession agreement of Zambia Railway and terminate the long term supply agreement which ZESCO has with the mining companies and come up with cost reflective supply contracts.
QFM
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Make a deal with Liato…He’s got/had the cash!!
Zesco is BITTER!
Interesting reading and the pieces just fit into my puzzle,Government owes Zesco, no wonder the Energy Regulation Board is always toothless to Zesco’s demands of increasing tariffs. Government should be fair let them pay to enable Zesco’s operations i.e ( buying latest 4 x 4’s) instead of letting the poor citizens shoulder the burden. we are already paying more for the heavily Loaded Shaded Zesco power its time the Mines stopped enjoying unfair incentives. why should mines enjoy low tarriffs when they don’t even pay windfall tax. GRZ is used to free things so am sure they thought Zesco Power is generated by sata free of charge.
Money going around, from govt to govt, konesha some in the pocket. Yahoo!!Â
If you slapped ka Chitundu’s forehead while not looking……..you would be forgiven for thinking you have just tapped  a firm behind.
2pac at work
so is that the reason that most of the country is suffering fima load shedding? Its absurd, some one in govt, like so many others, is not doing their job and making everyone suffer the consequences.. fyabupuba ba kolwe!Â
no 2 you can tell muntambo nchito and mmembe to pay from the 14 billion even the first lady who has been given 1.2 billion yesterday to pay.even sata can pay since he increased his salary by 100%
Why is it that these mines are always getting a free lunch in Zambia? These guys take all the money abroad and only pay the wage bill..we shouldn’t forget that these guys sell copper in dollars. Its high time ZESCO reviewed those long-term contracts the signed with them 10 years ago. Its time GRZ at least cleared its debt with the company as they are part and parcel of the selfsame problem. K200billion will go a long way for the company.
Nowonder MMD fired Chitundu, this man has failed larmentebly. ZESCO needs a well invested leader of which this chap lacks. CNP tiye nabo
Just fire this boy. All he knows is just to enrich the wife’s poor family.
These low tariffs to the mines are historical from Francis Kaunda in KK’s time. The low tariffs were understandable because the mines had no money and instead were being subsidized by govt. This is why they were sold but what surprises most of us is that the history of low tariffs has continued despite the mines being privatized and making a lot of money and despite the cost of service study conducted by ERB showing that the tariffs are not cost reflective. Don’t be fooled the mines will not close because other mines in the region paying higher tariffs have not closed. Bravo to Chitundu for standing up to govt. Previous MDs have not been brave but instead have been donating money to the MMD openly.
i seem to seeing the right man running ZESCO.Even have the courage to tell govt about debt .chewe you are jelousy with your comment.describe what type of MD you want for ZESCO apart from CHITUNDU.wait for the next years and see how much he will do.