CTPD urges govt to break up Zesco to solve energy crisis
By Tony Nkhoma
ZAMBIA’S power problems can only be resolved if government unbundles the dominant key functions of Zesco Limited and offload them to independent operators, the Centre for Trade Policy and Development (CTPD) has said.
CTPD legal researcher Lucy Musonda urged government to quickly implement an independent system and market operator in order to fully deliver the benefits of the Zambia’s Energy Compact commitments recently signed.
Musonda said the country power sector reforms still remained at risk because of Zesco’s continued dominant holding of overlapping licences such as a generator, transmitter, distributor and system operator.
She said in a statement yesterday government should quickly resolve Zesco’s overlapping licences if the recently signed National Energy Compact commitment could materialise.
“The measures are not just technical aspirations, but they are essential tools to achieve Zambia’s ambitions of mobilising US$9.5 billion in private capital and expanding generation to 10,000MW by 2030,” Musonda said.
She urged government and the Energy Regulations Board (ERB) to unbundle the key functions within Zesco and operationalise an independent system and market operator by the end of this year as committed under the Compact.
Musonda said while CTPD applauded government’s bold commitments under the National Energy Compact, which was signed early this year, the structure, while historically necessary, was no longer fit for a modern, competitive energy landscape.
“It presents a clear conflict of interest, discourages independent power producers [IPPs], and risks fair market access for new players being undermined. This concentration of power in a single utility threatens to delay or dilute the impact of open access, despite national commitments,” Musonda said.
He said CTPD remained committed to supporting the Compact’s vision to deliver universal access to affordable, reliable and sustainable energy as part of its broader efforts to promote inclusive and sustainable energy access.
She expressed optimism that the Open Access Framework put in place through the Electricity [Open Access] Regulations 2024 would help attract private investment, scaling renewable energy, and ensuring energy reaches the last mile.
Musonda urged Zesco to continue engaging transparently and openly with all sector players, and to position itself as a facilitator of national goals rather than a gatekeeper.
