Chamber of Mines president Nathan Chishimba says any electricity tariffs formulation should be well explained to the consumers.
Chisshimba said lack of transparency makes reliable tariffs formulation difficult.
He said this at a CEC media Capacity Workshop at the Garden Court Hotel in Kitwe.
“Formulate tariffs that are transparent. The lack of transparency makes reliable tariffs formulation difficult. We can’t have a formal basis of tariffs. Cost of producing electricity is not know,” Chishimba said.
He said the the mines do not deprive the Zambian people power.
Chishimba said the problem is that Zambia has not invested in power generation.
“Mines do not deprive Zambians power. The problem is not the mines energy usage which is within global norms, but Zambia’s small installed electricity base. We have not invested in power generation. We invested hasty in the new projects. These projects are excessive priced. Uncompetively priced new power projects, sad for the country. All these investors we are inviting have a basis.”
“The mining industry is committed to the principle of paying electricity tariffs that reflect the cost of an efficient, internationally competitive power supply service. Reforms must be respectful of existing legally binding agreements and achored on a robust objective regulatory regime,” said Chishimba.
Meanwhile, Copperbelt Energy Corporation Chief Executive Officer Owen Silavwe says the company has started supplying power to the Democratic Republic of Congo.
“CEC is not a middleman. We have invested US $600 million. We are not a middle and invest in sweet talk. We have invested in serious assets that require huge working capital. We require a return for the investment. Because of these investment, we require serveral returns yearly if not monthly. We put in US $24 million every year in the investment to maintain.”
“We have started supplying power to the DRC. 20 percent of our gross margin come from DRC from supply power to the mines. We invest in generations. In the future, we invest in solar, hydro and wind energy. These are some of thr services that we will invest in,” Silavwe said.
And Northwestern Energy Corporation Limited managing Director Andrew Kamanga called for more platers in thr transmission of energy in order to make the sector more viable on the market.
Even when you a explain it well, a dull person cannot get get it! It is in the blood.
Hahaha and you expect arrogant PF to explain? They don’t do care and they know that there’s nothing you can do even if they don’t say nothing
For the first @Sharon you have sound objective and stack to the topic, keep it up mune. ALL I can read is investment, investment, give us the details What, Where, When and Who? Not this fell in the gaps statement. Transparency is the key to instilling confidence and stakeholder buy-in. So try again it’s not too late.
The root of the power crisis can be traced back to the period between 2001 and 2008, when the mines were sold off to foreign investors. Not only did government sell off the rundown mines for a song, but as a sweetener they even promised the buyers cheap electricity – subsidised by both the domestic consumer and the government. This sweetener came to the fore last year when CEC reduced power supplies to Mopani after the company refused to pay new power prices introduced by the government at the start of 2017. Mopani said the fee increase wasn’t part of its agreement with CEC and warned the dispute could affect 4,700 jobs. The government raised prices because it needed to pay for imports and electricity from private producers. What explanation do you need?
Are we about to see an increment in electricity tariffs?
Chizungu Ba LT mwatyola!! No spelling checks etc. poor article. C-
Iwe Nathan, during the ZCCM times the mines has Power Plant that generated some power for the use by the mines. What has happened to the Power Plants for the mines to be 100% dependent on Zesco. Secondly, the government can not continue to subsidize the power supplied to the mines at the expense of the mines.
Transparency is a foreign word with the ruling elite, all they know is theft at the highest level, remember one of them was actually found guilty of stealing from a widow and u expect transparency,that’s a dream when u dealing with thieves
When power is cheapest in Zambia in Africa south of the Equator, this qualifies as a hallucination from people drank with maximising profit without shame.
Mines must pay the charged prices magnanimously so that Treasury can get due tax revenue to uplift the masses.
Nathan Chishimba, you are big and shameless liar! These mine owners have been exploiting and milking this country for so long and its amazing that people like you can side with them just for a penny. You suck!
Insoni e buntu ba Nathan, Sales tax you refuse, KCM not paying suppliers you are quiet. Zambia can only be developed by Zambians and I think you are not one of them. Can you produce the electricity tarrifs in this region including South Africa to justify your claims. CEC and Zesco have been investing heavily in new projects , its a shame that an educated person like you can start talking politics instead of providing strategic guidance in developing power generation in Zambia. One thing you should not forget together with those civil servants and politicians standing in the way of uplifting citizens livelihood, is that God’s judgement will not only affect you but also your children’s children because of your greed.
Message to Mr Julius Malema Member of Parliament and the leader of the Economic Freedom Fighters, a far-left South African political party,
could you kindly access what is happening in Zambia’s mining sector. As a nation we have been mining for decades, but our standards of living are worsening while so called investors rip us off. No medicine in hospitals, roads are rarely maintained; not even gravel ones which which used to be attended too annually. Garbage has replace flower beds and lawns. Our play parks have been given to foreign bidders.
Your independent, objective analysis and recommendations will be high appreciated as we seek to move forward.
And yet the government chooses to buy a fleet of new private jets for their own use, with missile protection – from whom is this needed? Is the problem not obvious?