ZESCO POWER EXPENSIVE

Mon, 18 Sep 2017 09:24:57 +0000

By Aaron Chiyanzo

ZESCO power has proved to be so expensive and now First Quantum Minerals (FQM) wants to import cheaper power from neighbouring countries.

ZESCO spokesperson, Henry Kapata confirmed that the mining giant opted to import power as it claims ZESCO tariffs were too high and would affect their profitability.

And Minister of Energy David Mabumba also said that Zambia had not yet established cost reflective tariffs but that Government was working out modalities to ensure they were in place.

FQM president Clive Newall said that the mining giant had agreed to a tariff increase of about US$0.09 per kilowatt hour, provided that Kansanshi and Sentinel could each import a portion of their total power requirements from alternative suppliers.

Mr Kapata however emphasised that ZESCO had enough power to supply both FQM’s Kansanshi and Kalumbila mines, and still remain with a surplus.

He disclosed that FQM claimed that it would incur huge losses if it operationalised entirely on ZESCO power, hence insisting on importing power from other nearby countries where they thought it was much cheaper.

 Mr Kapata said in an interview with the Daily Nation that ZESCO had not concluded negotiations with FQM, but currently supplying full power to the mining giant until negotiations were concluded.

“Yes, at the moment, we are supplying power to FQM full time until negotiations are concluded. We don’t know what the final agreement will be. However ZESCO has enough power to supply both FQM’s Kansanshi and Kalumbila mines.

“FQM is saying that ZESCO tariffs are too high and will affect their profitability, so they want to be importing some of their power from nearby countries where they say it is cheaper,” he said.

Meanwhile, Mr Mabumba said that FQM could go ahead and import power, but that it would even be more expensive than that supplied by ZESCO.

The minister explained that power was very expensive to import but that his ministry would not have a problem authorising the mining giant to import power so that it could prove for itself.

And Mr Newall said in a statement that the government and ZESCO had committed to facilitate the importation of power from alternative suppliers.