By 
The Centre for Trade Policy and Development (CTPD) has called on ZESCO, Zambia’s state-owned power utility, to provide regular and transparent updates on Power Purchase Agreements (PPAs), citing public concerns over financial implications and transparency.
CTPD Legal Researcher, Lucy Musonda, in a statement issued Saturday, stressed that while PPAs were critical for addressing Zambia’s energy challenges, they often come with significant financial burdens.
“CTPD encourages ZESCO to adopt a more open policy and disclose information on PPAs being signed. Regular and detailed updates are essential to build public trust and ensure accountability in national utility decisions,” Musonda said.
She added that the current practice of limited disclosure through the Energy Regulatory Board’s (ERB) annual Energy Sector Report is insufficient.
Transparency, she emphasized, was critical for rebuilding public confidence in ZESCO, particularly as the country grapples with prolonged power outages and an energy crisis worsened by drought.
Musonda noted that while Independent Power Producers (IPPs) account for only 20 percent of Zambia’s electricity supply, they represent over half of ZESCO’s revenue obligations.
As of 2023, ZESCO’s debt to IPPs and other stakeholders exceeded US$1.1 billion, largely driven by PPAs.
“Without greater transparency, these agreements risk exacerbating ZESCO’s financial instability,” Musonda warned, adding that poorly scrutinized PPAs could lead to overcapacity, locking ZESCO into costly agreements for unneeded power.
CTPD called for all PPAs to align with Zambia’s long-term energy needs to avoid unnecessary financial strain.
The organization emphasized that public trust and accountability must be prioritized to address Zambia’s ongoing energy crisis.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments