The Farmers Gazette | Page 5

Gazette The farmers Z esco is in a pretty parlous state to deliver its services now that it is collecting 250% more revenue that it did last month from most of Zambia’s consumers. Those poor mines, suffering from low copper prices, have been spared any increases- by virtue of mysterious contractual terms, we are told. Who contracted away half of our electricity production out of the jurisdiction of the Energy Regulation Board ? Zesco is required by the Energy Regulation Board to adhere to a number of Key performance Indicators. These include attending to faults in a timely and efficient manner as well as reducing its labour costs to a level way below the 50% of its revenue that it was spending on employee costs and benefits. Since these KPIs were introduced to Zesco management more than ten years ago, the utility has struggled to address this important component of what we are told are “Cost-Reflective Tariffs”. Most people will agree that Zesco must recover the cost of providing electricity to the Zambian economy. Taxpayer money should not be used to prop up energy supply. There are many more worthy claims on those funds than keeping the lights on. That cost of supply, however, cannot include a bloated and inefficient labour force or fund “seminars” at exotic locations across Zambia. The ERB needs to open up an effective complaints procedure that will properly and transparently address complaints from Zesco customers. Zesco can hardly be expected to police its own complaints system. In the absence of any such structure, the ERB will be perceived to be complicit in the poor service and incompetent maintenance practices that have become the order of the day within Zesco. Until Zesco is unbundled into three different and independent entities dealing with generation, transmission and distribution respectively, the operations of this critical component of the Zambian economy must be the subject of the most intense and transparent scrutiny from its shareholders and customers – the people of Zambia. We might also get the answer to how we sold the 50% Zambian share of the Kariba South Bank 600Mw generating capacity for $40 million when we paid $150m for half of that capacity at the new 120Mw Itezhi Tezhi plant. For Advertising Contact: Farmers Gazette Publications Ltd P.O. Box 37720, Lusaka - Zambia Or call +26096 690 5546, +26096 690 5545 Fax: +260 21 1 288173 E-mail: [email protected] Printers: New Horizon Printing Press Ask not what your country can do for you - ask what you can do for your country. John F. Kennedy, President of the United States of America. FARMERS GAZETTE November 2015 3