Escom ordered to pay Egenco K11.7 billion by December

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By Florence Mwale

Sole electricity supplier Escom has been ordered to pay Egenco K11.7 billion by end December this year.

This is part of the K53 billion Escom owes Egenco in electricity payment arrears.

 

The order by the Ministry of Economic Planning and Development as well as the Public Sector Reforms follows a recent meeting Vice President Saulos Chilima held earlier this month with the parastatals.

The aim of the meeting was to resolve the dispute on electricity payment arrears which existed for a long time therefore choking the operations of the two power institutions.

In a statement, spokesperson in the office of the Vice President Pilirani Phiri discloses that with the K11.7 billion paid by December, 60 percent of the balance equivalent to K25.2 billion will be paid by 31st December, 2021.

Another issue that has been resolved was a complaint by Escom indicating that the K1.8 billion it is charged monthly by EGENCO is wrongly calculated and unsustainable.

The authorities have ordered that the two institutions use the existing metering facilities to determine actual energy transmitted between the two entities effective 17th August, 2020.

Phiri further explains that it has been agreed that the Ministry of Finance facilitates the review and amendment of the current Power Purchase Agreement (PPA) and ensure new signed PPA is put in effect by November 1, 2020.

A task team has since been established to drive ESCOM’s turn-around strategy.

The task team will include members Ministry of Finance, Ministry of Economic Planning and Development, Ministry of Energy, Ministry of Justice and Department of Statutory Corporations.

To this end, it has been resolved that ESCOM and EGENCO should use the existing metering facilities to determine actual energy transmitted between the two entities effective 17th August, 2020.

 

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