ZESCO Managing Director Chitundu
ZESCO Managing Director Chitundu

President Edgar Lungu has approved proposals by ZESCO Limited to freeze domestic consumer tariffs for the next 24 months and to adjust commercial consumer tariffs to make them cost-reflective.

Special Assistant to the President for Press and Public Relations Amos Chanda said in a statement released to ZANIS last evening that President Lungu has directed ZESCO Limited Managing Director Cyprian Chitundu to proceed quickly to implement the proposals because the suggestions were pro-poor.

And President Lungu announced that he will soon make structural changes to some ministries starting with the splitting of the energy and mining portfolios currently combined under the Ministry of Mines, Energy and Water Development.

The President will also split the Ministry of Communications and Transport, Works and Supply into two to improve operational efficiency.

Mr Lungu assured Mr. Chitundu that the problems he complained about regarding conflicts of interest over the placement of energy and mines administration in the same ministry would soon be over once the ministry is divided into two.

In his special presentation to the President on the performance of the power utility, Mr Chitundu requested the Head of State to facilitate the enactment of laws that would help ZESCO enhance its operations.

The President said he was prepared to ask Parliament to enact laws aimed at improving operations of strategic firms such as ZESCO.

The President advised ZESCO to work with the Rural Electrification Authority to electrify 16,000 houses under an on-going project to light up village homes.

Mr. Chitundu appealed to the President to allow the company enforce commercial agreements and enable it recover US$110 million that KCM owes the power utility.

He said KCM was adamant to pay the outstanding electricity bills.

“The company’s revenue base had been affected due to failure by some mining companies to settle their bills. Some development agreements that were meant to attract foreign investments were against the commercial interests of ZESCO. The situation where mining firms pay low electricity tariffs at the expense of domestic consumers is one such example because it affects the financial viability of the company. Your Excellency, also it is unacceptable that the mines are being subsidized by domestic consumers,” he said.

Mr Chitundu submitted that mining companies should be compelled to purchase their power at a new and current cost but noted that existing bulk supply agreements prevented the power utility from achieving this goal.

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12 COMMENTS

    • Ma rabishi, don`t take us for granted . who goes to the market and request that i want to reduce the commodity price. since when has ZESCO applied to goverment for such. you think we are too dull? so you want those poor people to say ngati si Alungu sembe tavutika na ZESCO.

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  1. A step in the right direction.
    There must be no free lunches.
    In-house cost reductions must restore profitability in mining.

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  2. Chitundu sounds as though he knows he is an endangered species at ZESCO. He is trying to sound very sophisticated but end up making popularist and not business statements and If you read between the lines,what he is asking for goes down very well politically but not economically. This is what has killed ZESCO and Zambia business, having unqualified and incompetent people run them.
    The other day at Mfuwe another parastatal CEO from ZAWA was patronising the President congratulating him for re appointing Jean Kapata as minister apparently to have his position as DG confirmed.
    EL must not be fooled by this patronage by this desperation by parastatal chiefs who want to protect their jobs which they are doing so badly.
    They must be replaced!

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  3. Good move my presido!!!!let the poor enjoy too since they’re the ones who made you president.do more for the poor sir since we’ll also reward you in 2016 by using nega nega formula in your favour!!!cry babies will cry even more in 2016!!!GO PF GO AND IFINTU NI LUNGU!!!

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  4. Very dull…Since when did you hear a producer proposing a freeze in prices? It should be the other way around! Bushe propaganda tayakapwe. Intelligent Cyprian flying to Mfuwe only to make a “proposal” Why not just keep quite.

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  5. I have no comment for now, I would rather wait to see if these ideologies (for they are not economic ideas) have been thought through and given a fitting critique. Are we not already in trouble with mineral royalty tax, VAT refunds, etc? Didn’t the Statistics office tell us just last month that copper production had plummeted to well below the previous 750,000tons instead of attaining the projected 1,000,000tons by 2014?
    What I mean is that as a nation we should think through our plans, rather than toy with ideologies which we cannot be implemented. And whether we implement them or fail to do so, the victims are our dear poverty stricken people whom we claim to be protecting, as the end result is less and less jobs. And we have repeated this countless times since in 1964!

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    • @Chief Economist
      It couldn’t be said any better than what you just did. These populist ideologies will not take us far in light of the mounting debt, plummeting copper production and pricing. Our goals have to be realistic and attainable and not for political expedience.

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  6. At first glance i thought he reduced then asked the president if he could freeze it for two years. But alas its mare Political Propaganda. ZESCO is a monopolist and they determined there price when ever NO was forcing them to INCREASE so there was need to as the president that. Isn’t there ERB for heavens sake to start dragging HE into this. I m glad the enlightened country men and women have seen this.

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  7. chitundu,congrats u have done great for ZESCO in few years ,we want power stations as u get on planning for the future.u are the only MD so far who has a long term plan for zambians electricity production since independence.print more magazines on ZESCO projects so as more people should know what u are doing at ZESCO.Keep it up
    Haters will cry more .mean while u have sold yourself world wide.

    forgive those who hate u.esp those close and working with u.
    we need enemies,they help us move to the next higher level.

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    • Yes Chitundu continue your hard work including the power cuts we have continued to enjoy. Build more power stations while you can’t even maintain the existing ones.
      We need to be serious as Zambians. What are you praising Chitundu for?

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  8. ZESCO is inept with highly corrupt officials right from the TOP: PF must clean up: For example people at Kabangwe 6 miles and 10 miles Kabwe RD have no ZESCO PRE-PAID PAYPOINTS – DESPITE THE NUMEROUS REMINDERS TO ZESCO BOSSES. the real reason for this state of affairs is that PEOPLE are forced to buy from tutembas owned by the ZESCO personnel who charge Draconian high fees for the shoddy service of buying UNITS.

    Someone must urgently ARREST these culprits.

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