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Alba Iulia
Wednesday, January 12, 2022

No decision has been made to restructure ZESCO yet, its only the assessment being done

Economy No decision has been made to restructure ZESCO yet, its only the...

Power utility, ZESCO Limited has dispelled assertions that there is an impending restructuring of the company and has clarified that the Industrial Development Corporation (IDC) is only conducting an assessment or research to understand the current status of ZESCO.

According to Radio Phoenix, ZESCO Limited Senior Corporate Affairs Manager John Kunda said that no decision has been made for restructuring yet and that there are currently no outcomes or results made with only assessments ongoing by both the IDC and internally by ZESCO itself to look at what viable options can be proposed for the future of the power utility.

And Dr. Kunda has disclosed that ZESCO currently has over 66,000 pending connections countrywide for people that have paid and are waiting to be connected to the power grid with some of these dating as far back as 2017 due to financial constraints.

Dr. Kunda explains that ZESCO is in the process of meeting its suppliers of required poles, cables, and meters to make them available while also engaging the energy regulations board to align and clarify sustainable connection fees saying currently if a customer pays K3,000 for a connection, ZESCO still has to borrow K7,000 to top up to facilitate the process.

There have been ongoing discussions about a possible restructuring and unbundling of ZESCO which has reportedly been on a loss making trajectory for years now.

Meanwhile, Energy expert Johnston Chikwanda is calling for enhanced communication on the proposed restructuring of power utility, Zesco to avoid speculation by the general public that the firm is on the verge of privatization under the new dawn government with an imminent International Monetary Fund –IMF- deal.

Mr. Chikwanda says there is a need for government to adequately prepare the general citizenry for major policies and decisions that will be made to facilitate the impending restructuring of Zesco limited.

In an interview, Mr. Chikwanda is also urging government to disclose conditions set within the much sought-after IMF bailout package to clarify whether the proposed restructuring of Zesco by the Industrial Development Corporation-IDC is attached to the agreement.

He adds that the reputation that IMF is perceived to have by Zambians leads to numerous speculations which must be quailed with improved communication and transparency in the manner the decisions are made.

6 COMMENTS

  1. Successful ranchers know the best time to sell their livestock is after fattening the animals not whn they’re diseased and weak. Zesco is diseased and weak. It’s time to call in a veterinarian to treat it.

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  2. 66,000 pending connections, from people who have already paid, going back FIVE years! Are these guys not ashamed??? And why do we get comments from this totally corrupt and incompetent Johnstone Chikwanda? He is more than just a little bit responsible for the mess we’re in! People, be clever and do like I did: GET SOLAR! No more outages, and the power is FREE!

  3. “ZESCO which has reportedly been on a loss making trajectory for years now.”

    Losses are due to thefts and uncontrolled costs especially head count which has been overpaid for years.

  4. Reading between the lines, Zesco wants 2.33% increase on connection fees. Waiting time to connect to the grid can be in excess of 5 years. Be serious guys. How can one begin to run a business, let alone develop a country? Is there no one ashamed of how we’ve messed up? With all the resources we have, we can’t even run a toilet. Dear God, are our thoughts as dark as our skin. So embarrassing.

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  5. We know from Energy Markets that bundling a vertically intergrated has created difficulties with eventually bankruptcy and closure of other segments once part of a whole working vertically intergrated unity There soft issues currently not in place and pointing to the fact that it could be catastrophic Foreinstance the formation of an Independent systems operator This fights the structure of Zesco so basically it’s not a good thing However there are also many forms of unbundling but this also doesn’t support out energy sector for long-term Also Zesco is valuable company with sound initiatives and Financial and Stratergic Transformation is able to Turnaround

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