Govt to import power from Mozambique

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MINISTER OF ENERGY, HON. PETER KAPALA

Govt to import power from Mozambique

By Kombe Chimpinde Mataka

ENERGY minister Peter Kapala says government will start importing electricity from Mozambique on a pay-as-you-go basis after resolving the debt it had with the power utility in that country.

He also says when Zambians get to pay cost reflective electricity tariffs they will see Zesco start performing to people’s expectations.

Featuring on Hot FM’s Red Hot Breakfast programme on yesterday, Kapala said the import would also lead to drastic reduction in load shedding hours.

“We are expecting to start importing some power just to supplement what we have got already. We are in agreement with Mozambique. Mozambique has offered to give us 100 and 200 megawatts. That is why I am optimistic that once the process is sorted out we should be able to reduce the load shedding hours,” he said. “Mind you this is a long term contract with Mozambique. It will be pay as you go. Yes, we have paid them. You, see there has been a lot of legacy debt. Government owes Mozambique $24 million. I understand the Ministry of Finance have secured and they have paid what is remaining. Now is the pay-as-you-go, so we anticipate that by next month our situation

will improve greatly.”

Kapala explained that the contract would not be long term.

“We don’t want a firm contract because they may want us to give the six months, one year contract for them to supply but they have been generous. It is like the way we do with Zimbabwe, which is, they pay in advance then we supply. The units run out, you cut. They have to put more units for them to get the power,” he explained. “We think by next month or so, we will be good to go. Kariba Dam, we are still generating steadily at 200 megawatts, somewhere there. Remember, the installed capacity is 1,080 megawatts, now we are generating about 200 to 250 megawatts. That is quite a significant reduction but it will soon pick up. We get daily inflow from the Zambezi River Authority which is very encouraging. In the next month or so we should be alright. Not to full

production but at least the load shedding times will drastically be reduced.”

Asked why President Hakainde Hichilema assured Zambians after coming in office that load shedding would be a thing of the past, Kapala said there was already a power surplus.

“You see, there is some understanding in the way things have been put and what the President meant. The President was given correct information to start with. The President was looking at the installed capacity, which is about 3,500 megawatts. Demand is about 2,900 megawatts – somewhere there. There is a surplus already, that is the surplus that we export,” he said. “If I may agree with my President, it is true

there will be no load shedding. But as I said there is 86 per cent of the generation in the country, which is hydro based and depends on the rainfall. If there is little hydrology going in the dams, the President cannot predict; even I cannot predicate.”

Asked why the Zesco board chairperson Vickson Ncube apologised to the nation if the President had correct information, Kapala said the apology was unfortunate.

“The President is given technical information. That is unfortunate for him to have said that (apology). It is an apology that has been said in public domain but we will just say let us move on,” he said.

And Kapala has called on Zambians to make submissions on the notice by the Energy Regulation Board (ERB) that Zesco intends to hike electricity tariffs beginning first quarter of this year.

“With this coming of new connection fees and tariffs that have been advertised by the Energy Regulation Board, we have left that to the public to comment. So do your submissions and I will come and comment on that later on because as government we do not interfere with the operations of the Energy Regulation Board. It is them and their customers to speak. They are the regulators, so they know what should prevail because we need to get to cost reflective tariffs. That is when you will see Zesco start performing to people’s expectations,” said Kapala. “We should part Zesco management on the back, they have not increased the debt. They have managed to hold off the debt and they have managed to raise the revenue from the little that we are exporting. When did we last see revision of electricity tariffs? 2005. How long ago was that? Zesco needs money. The public will think I am supporting Zesco from without. Zesco is a utility company, times of changes – costs have changed. Salaries have gone up. I don’t think you have been
on the same salary since 2005.”

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