Government says there is need for bulk power users to pay cost reflective electricity tariffs to ensure Zesco remains afloat and economically viable.
Minister of Mines Christopher Yaluma says government has engaged mining companies on the Copperbelt over the proposed revised electricity tariffs to be implemented by Zesco for bulk users.
Mr. Yaluma says government wants to create favorable attractive economic tariffs without injuring the mining companies or disadvantaging Zesco.
He was speaking in an interview with Journalists after holding a closed door meeting with the chamber of mines and mining companies in Kitwe over the proposed tariff increase.
The meeting was attended by Minister of Finance Felix Mutati and his Energy counterpart David Mabumba along with representatives from Zesco and the Energy Regulation Board -ERB.
And Mr Mabumba described the meeting as cordial and progressive adding that a position will be made before the end of the year.
Meanwhile, Chamber of Mines President Nathan Chishimba has commended government for consulting mining companies over the proposed revised tariffs.
Earlier Copperbelt Energy Corporation -CEC- Chief Executive Officer Owen Silvwe called for a favorable adjustment which will create a win- win situation for both government and mining companies.
ZESCO has been subsidizing mines from time immemorial, while the ordinary Zambians have been paying higher per voltage use. It is good to hear that they are agreeable to the adjustment and they should understand that, it is in their best interest to keep ZESCO afloat as privatizing ZESCO could imply very high electricity tariffs for these same mines. The symbiotic relationship between ZESCOs’ need for liquidity and the mining houses need for low cost power must reach an equilibrium where they are both winning.
Away from the mining houses paying fair electricity tariffs, there is need to have an incorruptible management at ZESCO. The current MD stabbed his former boss Cyprian Chitundu in the back so that he can take charge and make money through corrupt practices like buying second hand…
Zesco makes losses because of corruption and incompetence not what you are talking about Mr Dull Yaluma..
You don’t pay per Voltage but per Kwh. infact the K 150 you are paying for your house is peanuts. especially that the maintenance cost of residential are relatively higher than a factory getting power at 66 Kv. you downt worry about substation, low voltage technicians and supply lines, by the way Bulk buyers even pay for maximum demand if you know what that mean, more over zesco introduced Power factor Penalty which residents dont see
The current MD stabbed his former boss Cyprian Chitundu in the back so that he can take charge and make money through corrupt practices like buying second hand vehicles while pretending they are new vehicles.
ZESco need more than simply money, it needs a proper energy strategy looking at growing generation, diversifying the energy mix and renewing strategic assets.
So if that’s the case why did you have a closed meeting with the mines?
Fuel up, Electricity up, Royalties up, Taxes up, Salaries up and ultimately, operational costs through the ceiling. The only thing that will keep the mills running is the rise in Copper prices but even then, that is a big???
The cost bubble may burst soon and don’t be surprised when more bashi mine get offloaded onto our streets in 2017. Please negotiate wisely.
Just read the mining co’s 2015 annual report , and you will find Cash Cost 1 falling for all the big mining Companies.
Mistake was made at sale of mines when the buyers were promised lower tarrifs, no tax for five years etc.