Expensive independent power producers responsible for losses - Zesco
THE losses that Zesco is making are not caused by the low water levels at the Kariba North Bank Power Station but by the Independent Power Producers (IPP) high tariff charges, says Director Commercial and Customer Services, Chiti Mataka.
THE losses that Zesco is making are not caused by the low water levels at the Kariba North Bank Power Station but by the Independent Power Producers (IPP) high tariff charges, says Director Commercial and Customer Services, Chiti Mataka.
Mr. Mataka explained that Zesco is buying power from IPP at a higher price quoted in dollars which the power utility sells to consumers at a lower price.
"The losses are not emanating from the power station, what has impacted Zesco most significantly are what we call IPP," he said.
Mr Mataka said this in response to Muchinga Province Minister, Malozo Sichone who wanted to know whether the losses Zesco is making which has led to increase in tariffs are due to the low water levels at the Kariba North Bank Power Station.
And Energy minister, Matthew Nkhuwa said the ministry was engaging the IPP on reducing tariffs
“What Independent Power Producers (IPP) are changing Zesco is much higher than what Zesco is selling electricity. We have engaged IPP so that they reduce those tariffs to become more cost effective to Zesco and consumers. The idea is to serve the people or Zambia and we want to give them electricity at costreflective price,” Mr Nkhuwa said.