HH Takes On ZESCO’s Problems
The recent tariff increase has once again prompted criticism of state owned power utility ZESCO.
The Energy Regulation Board has permitted ZESCO to increase tariffs by more than 200 per cent for residential consumers using small amounts of power and by an average of 113 per cent.
Among other challenges facing the sector are supply shortages, which increased to 810 megawatts in November 2019 and badly maintained infrastructure. The ERB defended the move by stating a tariff increase was necessary in light of the “serious financial problems with regards to its [Zesco’s] profitability, liquidity, solvency, and efficiency.”
Opposition leader Hakainde Hichilema has commented on the move, accusing government of waste and mismanagement when it comes to the utility.
“The problem with ZESCO, that's resulted in the tariff increase, is purely mismanagement. It was one of the biggest beneficiaries of the borrowed Eurobond money, but all went into illicit and corrupt activities enriching a few in the PF,” the UPND President wrote on Twitter.
“The increase in the tariff is to support ZESCO's bloated workforce that includes numerous unqualified PF cadres, and to allow for it to continue being a cash cow for PF operations, keeping ZESCO from progressing,” he added.
Mr. Hichilema has called for the removal of PF cadres on the payroll and their replacement with qualified professionals.
He has listed the reasons behind ZESCO’s failure as follows:
Insolvency
Corruption
Bloated workforce
Bloated expenditure
Cadres on payroll
Politically appointed management
The UPND leader pledged to fix ZESCO if elected. He said he would do so by embarking on the following course of action.
An HR audit
Diversifying the energy mix
Transparency in procurement
An effective and accountable board
Independence from politics
Surplus generation for export market
Attracting smart investment
Debt restructuring