Unbundling ZESCO costly-PSDA


UNBUNDLING Zesco will add more pressure to the economic burdens Zambia is facing because many departments will have to be created and that will require colossal sums of money, says Private Sector Development Association (PSDA) chairperson Yusuf Dodia.

Mr Dodia said unbundling of Zesco would not be the answer to solving the current problems the energy sector was facing because the procedure would require colossal sums of money for new management and buildings.

“I think the unbundling of ZESCO may not be the answer to solving the problems because what we are likely to create is three ZESCOs one for generation, distribution and one for transmission and all of them will need new management,” he said.

He was responding to calls by some sectors of society for the unbundling of ZESCO as a way getting replacing the “inefficient” current Zesco team.

He explained that unbundling the institution would lead to various organs in the energy pipeline disassociating  themselves from an other part of the value chain.

He noted that the procedure would create more harm than good as the cost of doing business in the electricity sector would just multiply three times than it already was.

“Distribution will only concentrate on distribution and will not be held responsible for transmission or for generation, the same will apply to generation and transmission which in the end will not solve anything,” he said. Mr Dodia said the current ZESCO model was workable, cohesive and accountable to the nation, adding however that the challenge was that it had too much political interference.

Meanwhile, Mr Dodia observed that the current challenge with regards to the energy crisis in Zambia was something which needed deep and careful thought.

“I think it’s very important to look at the issue of energy very critically because  in many parts of the world including Zambia there are many activities in the economy that we have been labeled as social economic like  education, health, and infrastructure,”

“We need to ask ourselves if electricity is just another product in the economy or if it is part of the social economic investment,” he said.

Mr Dodia said there was need to note that the possibility of the Zambian economy collapsing due to expensive electricity was very high as most businesses depended on it.


Categorized | Business

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