Friday, March 29, 2024

New ZESCO electricity tariff not meant to harm Zambians – Sisala

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ZESCO Managing Director, Rodney Sisala
ZESCO Managing Director, Rodney Sisala

The Zambia Electricity Supply Corporation (ZESCO) has urged Zambians not to consider the proposed hike in electricity tariffs as a move meant to financially disadvantage them but as one aimed at easing their lives in the long run.

ZESCO Managing Director, Rodney Sisala told ZANIS today the electricity utility has not effected any significant tariff increment in the last ten years hence difficulties in expanding its operations and electricity supply.

Mr. Sisala said it was inevitable for ZESCO to increase the tariffs to up to 66 per cent in order for the company to improve electricity supply, whose domestic and industrial demand has increased massively in the last few years.

He explained that for his company to expand its supply, it required to borrow money from financial institutions and pay it back hence the need for electricity consumers to pay for the power.

He said electricity tariffs in Zambia were less than half of what was prevailing in most of the countries in the Southern African region.

Mr. Sisala reiterated that ZESCO requires US$ 400 million to extend the Kariba North bank power generation plant, which would generate an additional 360 mega watts of power.

“We need an additional US$100 million to put up another line because currently, we only have two lines to supply power,” he said.

The Kariba North bank has presently four generators and ZESCO was planning to put up two more generators to increase power generation.

A few weeks ago, President Rupiah Banda launched the construction of the extension project at Kariba north bank.

ZANIS/KSH/MKM/ENDS.

52 COMMENTS

  1. “Mr Sisala said it was inevitable for ZESCO to increase the tariffs to up to 66 per cent in order for the company to improve electricity supply, whose domestic and industrial demand has increased massively in the last few years”. If this statement is true then the opposite should be the case. Rockeck science?

    I thought companies were closing and most people were struggling to pay! Kanshi ile booming!

  2. This is double punishment,you beat a child then you tell her/him not to cry!!!!!!!!!!!!!!sisala dont you think a lot of people are out of employment at the moment and have you checked how many people manage(individuals) to pay their bils?think twice before you act.

  3. Everytime i hear about Zesco its either Load shedding or increasing the tariffs, cant they for once talk about improving their services before they increase tariffs.

    • iWE EVERY ZAMBIAN DESERVES A BETTER LIFE. THAT IS CAPITALIST MENTALITY. IS SISALA YOUR UNCLE OR WHAT? SPEAK SENSE AND CUT THE BULLS**T

  4. Does anyone on this blog know the proportion of Zesco’s revenue between Companies and households. Do companies pay the full energy bill or has the Govt subsidized them as part of incentives e.g to mines. We dont want to overburden households with bills thay cannot pay. The govt can find otherways e.g cut down expenditure somewhere and direct the money to Zesco, on behalf of households. This could be a way of subsidizing household bills.

  5. Mr Sisala doesnt know what he’s toking about.He’s rejoicing bcoz his salary & alowances wil also be hiked.When wil selfishnes in zed stop??Mr Sisala think about families that cant even aford a botle of coke

    • This is toal nonsense am a student doing an economics ubit in my major and i cant belive they have just hiked tarriffs.For you information mr sisala does this ring a bell to you “Finacial crisis”does he know how many zambians are out of jobs.The truth of the matter is goverment have to implement price floors for low income households,the other factor is how do you expect demand to be high when people have no money to spend.(this is truly old headed economics mr sisala) The fact is if you hike tarriffs demand curve will shift to the left which will be a negative growth for zesco,it brings tears to my eyes that zesco has no competitiors if they had they will not bring up such nonsense.

  6. This man must recollect his thoughts,expanding a company with same poor management wont change anything,ZESCO has failed to run the existing plant capacity and expanding the system wont help either.They have a pathetic management system,the only services they have provided on time so far is load shedding.Why should the poor zambian be the scape goat in this 66% increase,find other ways of fundraising bwana.I thought that the initial investment costs of the plant where incurred long time ago somewhere 1966 if am not mistaken when the plant was built, and the running costs aint that much,so why hustle the poor …..

    • One time Ghost… I was mistaken about you when you were trading those barbs on the blogg. Now what you’ve put there similar to what I was going to post on the blogg. Keep it up cool running! Also to add… Zambia has a silent policy of investing in equipment (e.g. ZESCO machinery and equipment) overlooking substantial repairs and maintenance. I wouldn’t be surprised to see some equipment bought during colonialism still running at ZESCO… our reasoning is because they havent broken down, but come on technology is moving “the world has changed and so we should change with it”. For an equipment to be replaced, it has to blow up and cease regardless of the present technology.

    • I was kinda of a kid when Sisala was with ZESCO… am surprised he is still there!!! What we have in Zambian economy is recycled ineffiencies… that goes to explain why the situation, is as it is… where was management before all this nonsese… guys in Europe know that they are running out of power in 20 to 30 years from now, and guess what? They have already started investing in clean nuclear, wind and solar technology to diminish that threat. Guess what an African does, particularly a Zed… we cross the bridge when there, only to discover there is no bridge and standing before us a chasm.

  7. Why even compare the tarriffs of zambians with other southern African countries?First compare the economics,and the cost of living,zambians are poor ,we are second to Zim we all know that, revist the 66% increament,and remove those hands off peoples throats.
    In my view, the basic mantra for being successful in a competitive market is not by increasing tariffs but reaching the benefits of lower cost to customers.I hope the zambians will be more wiser by 2011 .

  8. “Zambians should not consider the proposed hike in electricity tariffs as a move meant to financially disadvantage them but as one aimed at easing their lives in the long run.”

    What piece of crap? I guess it is the issue of spending a dollar in order to save a penny….

    • A 66 percent tariff increase is total madness. And you will recall that civil servants where denied salary increase this year. Unbelievable.

  9. This MD has taken things personal dont rob the little we have you have already made money yoself. Now talking about your long-run plan why shud we suffer for your future benefit? paying zesco more 2de is not an investment.. pliz can the RB govt do something here

  10. with the current economic situation, its time ZESCO thought of reducing their operational costs instead of milking from the already overstrined citizens. Maybe Mr Sisala u nid to figure out how you can reduce your operational costs by reducing the number of your staff or/ become more effecient.

  11. Can`t wait for Mr Free Market Fimo Fimo`s comment. The last time he was here he called himself Prof Free Market Fimo Fimo. Opened his posts with insults for LT bloggers. I bet he was wearing even more rose tinted glasses!

  12. Please!! what good can come out of Sisala loadshedding’s mouth! shut up mudala. What do you know about zambians?

  13. 3Rq fimofimo,am gona set up a tribunal for U…….Wampesha or i wil remain mute like Magande nt until u rspond to ma mail..

  14. 3Rq fimofimo,am gona set up a tribunal for U…….Wampesha or i wil remain mute like Magande nt until u rspond to ma mail..Unaniyambial dala

  15. So this is how a big lie sounds like and Zambians believe it. This habit of making people’s lives miserable and then saying things will be better in the long run does not impress anyone. Either you have a strategy which the people can feel by accepting the rise or you claim to have a strategy of making their lives better but can not prove it. Politics of trial and error at the expense of the poor. Tasteless moves.

  16. Actually, Sisala is right when he says Zambians don’t even pay half of what consumers in other counries pay. This man is just running a company and his job is to see that it maintains growth as a sole propriety, so don’t blame him. Blame the policy makers for not allowing competition in the energy sector, which naturally forces prices down.

  17. Mr Sisala, while “He said electricity tariffs in Zambia were less than half of what was prevailing in most of the countries in the Southern African region” might be true, how much do salaries and/or wages compare for a Zambian worker to a Botswana/Namibia/South Africa/Lesotho/Swazi land/etc ones?

    I am in need to statistics that present a full picture of the situation on the ground and not only comparing things without considering how different country economies in Southern Africa are performing.

    Of course your graduate engineers at ZESCO could be getting 6 million Kwacha or so per month, but how much does a graduate teacher/nurse/police officer/etc get from GRZ in light of this?

    • Greetings Maestro. As I tried to explain on #36, the problem is not with ZESCO, thze problem is with the government, who as a policy maker has not created policies that would invite investors to compete with ZESCO and thus force their prices down.
      I wonder if my point is hitting home. Imagine you were the sole supplier of electricity in Zambia and you wanted to increase your earnings in order to improve your performance and expand your business in the region. What would you do? That’s exactly what ZESCO has done!

    • Thanks and greetings Nine Chale. I very much understand your point. Surely our GRZ is somehow failing to do things properly. However, ZESCO being a parastatal can do things in the interest of all Zambians. Later.

  18. I believe Sisala has over-stayed at zesco and there is need for someone with new ideas and skills to take over. We know zesco has been the conduit for government funds to MMD but this man has clearly no clue as to what to do to generate income apart from hiking electricity tariffs. The government has a social responsibility to its citizens and there is a need to give the poor Zambian a break. Twanaka nenu ba Kelenka!!!!!!!!!!!!!!!

  19. SISSALA DO KNOW HOW TO SEEK A GRANT? A GOOD MANAGER WILL LOOK AT HOW VIABLE HIS COMPANY IS AND DO A BENEFIT COST ANALYSIS. FROM YOUR TALK ZESCO IS NOT A VIABLE COMPANY AND THIS JUST REFLECTS HOW SHALLOW YOUR MANAGERIAL SKILLS ARE. EMPLOY PEOPLE WHO CAN THINK FOR YOU INSTEAD OF SHIFTING YOUR INEFFICIENCY ON POOR ZAMBIANS. IF I WERE YOUR BOSS I WOULD FIRE YOU!!!

  20. Sisala shud get his head out of his ass….! it has never happened and it will never. Zesco’s non increment of tarriffs for the past ten years shud not be used to punish the poor innocent Zambians. 66% Ah!!!!!!!!!!!!!!!!!!!! in yo dreams, wake up and face the realities of lyf.

  21. Please experts share the solution with other bloggers. Do not just shout from a lack of knowledge, like certain politicians (ruling and opposition by the way, in case I am misunderstood) who cannot keep their mouths shut.

  22. 41 nine chale, read and research before you open up. The policy has been there since 1995. If you read and understood things in your own country you would be telling fellow bloggers whether investors have come. Is this a case of whites hiding books from blacks/

  23. 46 Mwebantu: Fortunately for sisala you will never be anyone’s boss. Civilised society has a way of selecting leaders and managers. Managers for example are selected mainly on the basis of education, qualification, skills and the ability to understand and analyse issues. Do you fit in any of these categories, Mwebantu?

  24. #51 Sweeper: I am wondering why you think I am not already a boss somewhere. Academic qualifications alone are not good enough to competently run a company but leadership skills and good managerial capabilities as well. I agree with you that credentials such as good education are the criteria for selection of managers. Was Sisala subjected to that or the family tree was at work? In my view, manager’s performance is evaluated and if found wanting remedial measures are implemented. For your information , I am a boss and a leader and therefore you should retract your assertion that I will never be a boss.

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