Economic recovery plan on energy cheers expert

IT is gratifying that President Edgar Lungu through the economic recovery programme has assured that Government will re-engage Independent Power Producers to negotiate on the tariffs because Zesco will make huge loses, energy expert Johnstone Chikwanda has said.

Cost of taking power from IPPs, Mr Chikwanda said, is very high compared to the price at which Zesco is selling the same to different consumers .

He said it was important that the tariffs were reduced to reduce burden on Zesco which was incurring huge debts.

“Zesco has been paying a lot of money to the IPPS for them to buy electricity which they sell at lower prices. It is important that Zesco stops making loses once the negotiations are done,” he said.

He said in an interview yesterday, the plan had assured that the energy sector reform would continue and shall include urgently the revision of pricing mechanism in the petroleum subsector.

Mr Chikwanda said this had been the wish of players in the subsector, therefore, with the assurance from Government it would motivate and subsequently contribute significantly to the sector.

He said in an interview yesterday, energy was the life blood of the economy therefore prudent that all challenges faced were addressed for it to play its critical role to the country’s economic growth.

“This is an answered prayer for the players in the petroleum subsector,” Mr Chikwanda said.

It is also pleasing that Government has assured that the cost service study would be completed in March next year. It also touched on the completion of Zesco reforms by the end of 2021, the completion and commissioning of Kafue Lower Gorge project by the end of 2021.