Maravi

The increasing costs of power cuts

The increasing costs of power cuts
By Editor
Tuesday March 04, 2008 [03:00]

Zambians should brace themselves for power shortages which may probably continue until 2013. This power shortage should not be treated as a short-term issue. It is a situation that will last many years and we are in for a long haul. And it is time we started looking for ways of conserving the limited power that we have. Everything possible should be done to ensure efficient use of electrical energy. We will need to urgently develop a minimum energy standard for all new electrical connections. We may also need to phase out incandescent light bulbs in preference for compact fluorescent lights.

To achieve this, we will need to develop and implement appropriate policies and promulgate legislation that will ensure the promotion of power conservation practices.

This power shortage should enable us to start looking for more ways of reducing our dependence on electricity. Yes, it will seriously affect our agriculture. But we should start considering other ways of farming that use less electricity so that even when we have established adequate capacity, our consumption should remain low.

There is no doubt that agriculture production will be negatively affected by inadequate power supply. It is expensive to switch to generators not only in terms of the diesel that has to be used but also, these generators are expensive and not easily available. It is not easy to get generators say in the ranges of 100, 200, 300, 400 or more KVAs.

These are not available ex-stock, they need to be ordered and it takes months for them to be delivered. But there is also the issue of the money required to purchase these generators. Where is the money going to come from? This is much more so in industries where the costs are very high and liquidity is low.

This will definitely not only reduce production but it will also push the cost of what is produced much higher, resulting in increased prices to the ultimate consumers. In the export market, this may push our products out of competition because they will be too expensive.

And as Zambia National Farmers Union president Guy Robinson has correctly observed, this may slow or reduce investment in our productive sectors.

And already too much investment has been lost due to equipment that has been destroyed by low voltage and power surges. As we all know, Zesco is protected from compensating anyone whose equipment is destroyed as a result of power outages.

Many plants and machinery that use motors have incurred serious damages as a result of power surges. And replacing motors is not a cheap undertaking – that is if they are readily available in the first place. There are some businesses that have had to close while waiting for new motors to be imported.

Clearly, the loss of business as a result of these power shortages is gigantic.
These problems are understandable. But they could have been foreseen. We do appreciate the measures which Zesco is taking to mitigate the crisis. Load shedding is inevitable in situations of this nature.

But it has to be carried out in a more rational, equitable and disciplined manner. Zesco has come up with a schedule for load shedding, clearly showing the timings. But this is not being consistently followed, causing further problems for business and even households.

If there are problems in Zesco following its schedules, let them hold further consultations with customers and come up with workable ones. Most people would prefer longer but less frequent cuts. And they would like the cuts to be predictable through the schedule of planned outages.

Of course the areas and times should be selected according to the type of area – whether residential or business. The plan should also bring in equity instead of a situation where some areas are cut more frequently than others.

It is clear that more new investment is needed in power generation. It is also clear that Zesco alone, or together with the government, will not be able to mobilise the necessary resources to increase generation capacity. Therefore, an enabling environment is indispensable to accelerate private sector participation and additional investment in the power sector.

The power sector is facing additional challenges in the financing of power projects and institutional arrangements for implementation. These too need to be urgently addressed if we are to deal with this situation effectively.

Labels: ENERGY, ZESCO

posted by MrK @ 3:25 AM