The Lunsemfwa Hydro Power Company Limited (LHPC) has confirmed that it is not supplying power to the state owned power utility company ZESCO due to historical and long outstanding debts. This follows questions being asked on whether there is an artificial deficit that has resulted in domestic load-shedding why power exports continue.
LHPC, which is the first independent power producer – IPP in Zambia with a total installed capacity of 56 MW and has the capacity to contribute to cutting load shedding in Zambia’s and improve the regions power production via renewable power production, perhaps gives a test case as to whether more investments by IPPs could help end load shedding in the medium term.
Speaking in an exclusive interview with the Zambian Business Times – ZBT – LHPC Chief Executive Officer Alpha Mwale said before the production was suspended, most of the power produced was consumed or up-taken by the Copperbelt Energy Corporation – CEC.
LHPC revealed that even before it suspended production because of low water levels in its two reservior dams, it wasn’t not supply ZESCO due to long outstanding debt. A Check by ZBT has also revealed that ZESCO has a huge debt with coal fired Maamba Power plant, which has made the company operate at “half capacity”.
Mwale said ZESCO is one of their customers but of late, they were not supplying to the state owned power utility company and most of the power produced about 20 – 30 MW depending on the hydraulic condition was being consumed or off-taken by CEC.
He said this is due to some historical debts which ZESCO had accumulated and LHP needed ZESCO to clear the debt, a situation he said ZESCO has been slowly clearing in the recent past.
He however could not mention how much is still being owed now by ZESCO on what could be termed as confidentiality requirements with LHPC stating that the state owned power utility Company has been paying every month and there was need to have updated figures.
Mwale added that resuming of full production is expected in the First week of February 2023 and they should be able to commence production with 40MW and then within the same month, they would be able to do full load of 56 MW.
Meanwhile Mwale said chances are very high that this time around, they will be supplying power to ZESCO because of the payments they have been making in the recent past.
