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Friday, 11 April 2014

Energy Developments (Oil, ZESCO)

GRZ is currently importing expensive finished petroleum products through tankers hired by foreign suppliers Trafigura and Dalbit. According to Energy Minister Christopher Yaluma the arrangement is because Indeni Petroleum Refinery, Zambia’s sole crude oil refinery is obsolete. Yaluma says, “Indeni has outlived its usefulness and cannot meet the country’s demand. In fact, it is running obsolete and all we are doing is that we are pushing it along; otherwise its production capacity has fallen more than three fold" (Source: Daily Nation)

Garry Nkombo MP has advised GRZ to liberalise the energy market and allow more people to supply fuel if the cost of the commodity is to reduce. He believes the solution to fuel challenges lies in government allowing anyone to bring in the commodity without surcharging the 25 percent import levy. (Source : FlavaFM)

Energy Minister Christopher Yaluma says there is no need for panic over fuel running dry and prices immediately going up amid the weakening kwacha. Yaluma says, "there is no way in the immediate term the depreciation of the kwacha is going to impact the fuel, but should the Kwacha fall persist, then there could be some adjustment". The government is currently not passing on the cost of a weaker Kwacha to consumers, effectively subsiding the commodity. (Source: The Post)

ZESCO is planning to spend K220m to connect power to the Lusaka Multi-Facility Economic Zone (MFEZ). K150 million will go a substation that will break into the 330 KV line, with K50 million spent on the power line linking Lusaka South to the rest of the province. The Lusaka MFEZ is a $120 million project being developed through the Zambia Development Agency (ZDA) and will consist of self contained infrastructure among them housing and business enterprises. The money is being spent by GRZ rather than by the private sector who will actually benefit from being in the zone. (Source: Times of Zambia)

The Energy Regulation Board (ERB) has set a new minimum tariff for electricity to mines of 6.84 cents per kWh. The bulk supply tariffs between ZESCO and the Copperbelt Energy Corporation have been increased by 28.8% from 5.31 cents per kWh, with immediate effect, and tariffs for mines supplied directly by ZSECO will be adjusted upwards to 6.84 cents as well. The bulk supply tariff was last increased in 2011 by 30%. The Chamber of Mines is not happy and claims mining companies will go out of business. (Source: Zambia Weekly)

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