Thu, 26 Jan 2017 09:48:59 +0000
By BUUMBA CHIMBULU
LOAD SHEDING is expected to significantly reduce if the rainfall pattern continues until the end of March 2017, ZESCO managing director Victor Mundende has said.
Mr Mundende explained that if the rains continued, the main reservoirs for ZESCO which are the Kariba Dam and Kafue Gorge would be full to capacity, thereby enabling the company generate enough power.
He was speaking when he appeared before the Parliamentary Committee on Budgetary implications of fuel and electricity subsidies chaired by Mbala Member of Parliament Mwalimu Simfukwe.
“We expect first to have our reservoirs restored to full capacity. Once we have the Kariba Dam and the reservoirs at Kafue Gorge full to capacity, then we shall be able to reduce load shedding,” he said.
Mr Mundende also said ZESCO did not receive any subsidies from Government in 2014, but it did in 2015 and 2016 amounting to K352 million and K515 million respectively.
He explained that subsidies were payments towards the emergency power imports to cover for the differential cost arising from high cost of importing power at an average tariff of US$0.13 per kilowatt while the average selling tariff was US$0.06 per kilowatt.
“The subsidies covered all customer categories, including the mining sector, which account for more than 50 percent of the total electricity demand.
“The effects of not removing the subsidies on electricity will be adverse on ZESCO if the tariffs remain uneconomic. The company may be unable to pay Independent Power Producers (IPPs) and for emergency power purchases as the tariff for IPPs far exceeded the selling tariff,” he said.
Mr Mundende said Government needed to consider revising tariffs to cost reflective levels to attract investment in the energy sector.
He said Government needed to remain committed to provide support to ZESCO as an implementing agency of Government’s policy.
