Stop unsustainable Zesco debt accumulationBy KETRA KALUNGAThe rate at which Zesco is accumulating debt due to expensive electricity from Independent Power Producers (IPPs), has become unsustainable and should not be allowed to continue, says energy expert, Johnstone Chikwanda.Mr. Chikwanda said to prevent the accumulation of debt, the government should put in place measures that would facilitate an optimal level that combines both sales from Zesco power plants and those of IPPs.He said in an interview that taking such a step is important because even with increased own generated electricity, Zesco would still remain trapped with IPP electricity due to the long-term power supply agreement (PSA) signed.“And most of the PSAs have a standard “Take or Pay Clause” which imply that even if you have enough of your own generated power, you still have to pay the IPPs whether you like it or not,” he said.Mr. Chikwanda said Zesco’s debt burden, which stands at $3.5 billion, […]
Stop unsustainable Zesco debt accumulation
