From: ZANIS News <[email protected]>
ZESCO CEO justifies electricity tariff adjustment
Solwezi, May 2, ZANIS ——– ZESCO Managing Director, Cyprian Chitundu says ZESCO tariff adjustments are necessary to enable the company finance new projects and meet its loan obligations.
Mr Chitundu said the current tariffs are not cost-reflective of the actual cost it takes the company to produce power.
He said it is for this reason that ZESCO applied to the Energy Regulation Board (ERB) for a tariff review of 26 percent upwards.
Mr Chitundu said this in a speech read on his behalf by ZESCO Finance Director, Rodgers Chisambi during the company’s Labour Day luncheon held at Royal Hotel in Solwezi last evening.
“You and I know that without a cost-reflective tariff the company will not be able to finance new projects and indeed ZESCO will not be able to meet its loan obligations”, he said.
Meanwhile, Mr Chitundu said works at the Kariba North Bank power station extension project have progressed to an extent that machine number five should be commissioned by the end of the year while machine number six should be commissioned by February next year.
He added that works at Itezhi tezhi are progressing well with 70 percent civil works complete.
Mr Chitundu further said most of the US$ 225 million ZESCO was given by government from its Euro bond which will be used as seed money to procure a transaction advisor so that the Kafue gorge lower project could commence while a smaller component will be used for rehabilitation of the distribution and transmission networks.
Speaking at the same occasion, Power Generation and Allied Workers Union of Zambia, Vice President, Judy Chibulu has urged ZESCO management to address the unfair selectivity in promotions, replacements and other human resources related issues.
Ms Chibulu said such unfair practices should not be tolerated because they are demotivating the workers thereby, hindering successes of the company.