By REBECCA MUSHOTA –
THE Rural Electrification Authority (REA) has said splitting Zesco into three specialised institutions which are generation, transmission and distribution, will accelerate rural electrification.
REA chief executive officer Kelvin Musonda said unbundling Zesco would attract more power utility companies which would speed up electrification of rural areas.
Mr Musonda said this when he appeared before a Parliamentary committee on energy yesterday in Lusaka.
Mr Musonda said unbundling Zesco would encourage regional franchises which would be motivated to take electricity to rural areas.
“A regional distribution franchise could be much more motivated than Zesco to increase the connections, thereby widening its revenue base.
Capital subsidies for rural connections would be much easier and more transparent to administer with regional distributors than with a bundled Zesco,” Mr Musonda said.
Regional distribution franchises, he said, would also help promote generation from different sources in remote areas.
Mr Musonda said currently in its form, Zesco was unable to accelerate rural electrification consequently limiting economic growth in Zambia.
He said Zesco also faced other challenges because of its structure like insufficient generation capacity, inadequate distribution network, poor revenue collection and inefficiency.
MMD Lunte Member of Parliament (MP) Felix Mutati wondered what could be done to help REA improve the number of people in rural areas who accessed electricity because the figures were stagnant for the five years that the institution was operational.
Mr Musonda said there was need to improve funding to the institution to an average of US$50 million annually and consistently.
He also said there was need for REA to operate under a clear policy which would give it the opportunity to operate effectively and deal with other power companies.
Meanwhile the Parliamentary committee on Government assurances allowed Lands and Natural Resources Permanent Secretary Ing’utu Suba to chase the acting surveyor general Joseph Minango from the sitting.
Mr Minango together with Ms Suba and other officials from the Ministry of Lands were set to appear before the Parliamentary committee chaired by United Party for National Development Chikakanta MP Munji Habeenzu.
Mr Minango went late for the meeting and Ms Suba asked the permission of Mr Habeenzu to excuse him from the meeting.
Ms Suba said Government employees should not go before Parliament with a casual approach.
Mr Habeenzu asked Mr Minango to leave the sitting and asked Ms Suba to appear again before Parliament with a clear report as the one that had been presented to the sitting was unclear.