ZESCO should be a Profit Making Venture, as Patrick Mwila prods Zambian Media support
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By Ashton Kelly Bunda written 14th October 2017
ZAMBIA Electricity Supply Corporation (ZESCO) Senior Manager for Corporate Affairs Patrick Mwila has appealed to the media to play an integral role in educating the people that the “Sole Kingpin” of electricity supply has been almost a Charity Organization, hence the increase in tariffs.
Mwila explained that the legendary electricity providers very nearly started running on empty as the initial structures did not allow growth since service delivery comes at cost and resulted in the corporation to borrow money from financiers.
Mr. Mwila said despite being 100 percent government controlled ZESCO is supposed to be a commercial venture that should generate profit after delivering service within Zambia and across the borders, but instead the corporation almost grinds to halt due to cost of rapid expansion.
Mwila said current generation of ZESCO administrators were supposed to be lending the government money and also be one of the dependable sources of revenue generators in the country.
The Senior Manager for Corporate Affairs who was at pains when he trying to illustrate that ZESCO like any other everyday business ventures in society which need to realize profit, electricity has many value chains that start from generation level and then transmit in bulk to cities and there is cost for machinery, cables, other accessories as well as man power all has to paid for.
ZESCO is just like an entrepreneur who runs a bakery and should make profit, he or she use electricity and his machinery develop faults some times, he has to pay technicians to repaired and if he ends up selling his buns at 40 Ngwee instead of 70 Ngwee just because they want to please his customers, then he will be running at loss and end up failing to pay their workers if they do no increase tariffs to tally with expense.
“You see electricity is like any other everyday business venture we encounter in our communities, which need to realize profit, and pay bills and tax , electricity has many value chains , that start from the stage of generating and then transmit to consumers in the cities in bulk and there is cost for machinery ,cables , other accessories , expenses unbudgeted for along the way as well as man power. ZESCO is just like an entrepreneur who runs a bakery and he should make profit, he or she use electricity and his machinery develop faults some times, he has to pay technician to repaired and if he sells his bans at 40 Ngwee to please his customer instead of 70 ngwee, then he will be running at loss and fail to pay their workers” Mwila lamented.
He explained the government in line with the 7th National Development Plan 2017-2021 demands that all districts including newly created ones and the rural areas should have electricity come rain or sunshine and the media should keep abreast of all the developments.
Mwila was quick to point out the issue of ever increasing consumers at the rate of 90,000 and 80,000 per year with urban areas leading while the rural areas demanding their share despite a low populated.
He concluded with the Kafue Gorge project which will gobble an excess of $2billion dollars, before putting up turbines and generators and borrowing money will be the only alternative to complete the project.