ZESCO loses $110 million revenue from canceling power exports

The government has announced a gradual withdrawal of ZESCO’s 120 Megawatt (MW) power exports to mitigate the ongoing electricity shortages in Zambia.

Energy Minister, Makozo Chikote, explained that ZESCO had already initiated the phased reduction of power exports, taking into account existing bilateral contracts.

The process, which began in March, is expected to be completed by December.

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“However, this move will result in a projected revenue loss of $110 million,” Chikote said while addressing Parliament in Lusaka on Wednesday.

The Minister also acknowledged the Energy Regulation Board’s (ERB) decision to reject ZESCO’s application for a tariff increase, affirming government’s respect for institutional authority.

“Madam Speaker, the New Dawn Administration holds institutions such as the ERB in high regard, and their decision is noted. However, this does not represent the final outcome, as we are exploring alternative measures to support ZESCO’s financial obligations,” he added.

Chikote assured the House that the government, through the Ministry of Energy, remained committed to addressing the current power deficit and was actively seeking solutions to position Zambia as a regional power hub.

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