Zesco owes ERB K186m in fees

ZESCO owes the Energy Regulation Board (ERB) over K186 million in fees according to the 2018 Auditor General’s report. As at August 31 2019, the power utility company was owing K186, 398,168 to the Energy regulator in respect of licence and other fees. In the 2016 Auditor General’s report on the audit of accounts for the financial year ended 31st December 2016, Zesco and two oil marketing companies were again cited by the report for failing remit fees to ERB. Another report by the Parliamentary Public Accounts Committee (PAC), the committee expressed concern that despite the previous Committee censuring the Controlling Officer on the need for Zesco Ltd to offset the arrears owed to ERB, Zesco had not settled the arrears. The report also stated that despite PAC censuring the Controlling Officer on the need for Zesco Ltd to offset the arrears owed to ERB, the situation had worsened in that the amount had increased from K54,078,218 in 2016 to K107,330,758 in 2017 and from to K107,330,758 to K186, 398,168 as at 2019. The two oil marketing companies that owe the ERB are Midlands Petroleum Ltd and Continental Oil Company. Zesco is struggling with liquidity due to low power sales as a result of reduced electricity generation caused by low water levels at the Kariba Dam and other sites. Kariba North Bank, the country’s biggest power station is generating below 300 megawatts from its installed 1080 megawatts capacity.