By Amb. Emmanuel Mwamba
Power Exports, ZESCO and the proposed energy reforms by President Hichilema
…using the current energy crisis to implement neo-liberal and pro multinational corporation policies in the sector…
ZESCO is the predominant supplier of power to Botswana, contributing 48.8% electricity of the country’s current 410 megawatts imports.
Despite the country suffering the worst load-shedding crisis, ZESCO is unrelenting in its export of power to Namibia, Botswana and South Africa.
This is on top of the traditional export of power to Malawi and the Democratic Republic of Zambia.
President Hakainde Hichilema is pushing radical reforms of the sub-sector( without bothering recourse to Parliament).
He has forced changes that will significantly alter the status and standing of to the power utility-ZESCO.
He has hosted companies at State House from UAE, China, Qatar and others and literally forced ZESCO to sign power purchase agreements for the development of alternative energy source.
Following a Cabinet resolution , government announced the removal of transmission and distribution network infrastructure from ZESCO to be run by a separate entity. The details are unavailable about the structure and ownership of the new vehicle.
A similar decision in the 90s deprived ZCCM-IH of a valuable asset when Power Division , a company that managed transmission and distribution of power purchased from ZESCO through a bulk supplier agreement, was taken away and auctioned to the private sector. This company has since made billions of dollars over the last thirty years for it’s private owners.
Hichilema has introduced a policy called “Open Access” where the new transmission and distribution network infrastructure will carry power from independent power producers at a fee.
He is forcing public pension houses to invest in Maamba Collieries expansion. Maamba Collieries is investing in a $400million, 300 megwatts coal fired plant.
Due to green policies and climate concerns, Maamba Collieries, like other fossil fuel investments are facing significant challenges to secure financing and loans.
The cost to finance new fossil-fuel infrastructure, especially coal, is rising, while the cost for new renewables, the preferred and sustainable energy source, is falling fast.
Maamba Collieries is owned by a subsidiary of Nava Bharat (Singapore) Pte. Limited which holds a majority equity stake (65%). The balance equity is held by ZCCM Investments Holdings Plc (35%).
These measures are supposedly expected to spur investment in the electricity subsector.
He has forced the regulator, Energy Regulation Board (ERB) to approve the new changes.
We need to be concerned that President Hichilema is using the current energy crisis and the current desperation, to implement a long-term, neo-liberal and pro multinational corporation policy that will deprive ZESCO opportunities to serve and deliver power to Zambians at a reasonable price.
Does Mr Mwamba has something constructive to do in his everyday life other than writing propaganda?
Everyday you have to read something from Mwamba.
When readers get tired of the author they stop reading your material. Many times we comment even without reading your articles. We just read the title and the name of author then we comment because we already know your thoughts.