ZESCO Owes ERB K613 Million in Unpaid License Fees
Minister of Finance and National Planning has disclosed that ZESCO Limited owes the Energy Regulation Board (ERB) K613 Million in unpaid licenses fees.
Over K1 billion due in non-tax revenue had not been collected by Energy Regulation Board and Ministry of Lands and Natural Resources as of June 2024.
Speaking in Parliament during the question for oral answer session, Dr. Situmbeko Musokotwane revealed that during the period under review, ZESCO was owing ERB a total of K617.9 million out of which K4.4 million had been paid as at 4th November 2024, leaving a balance of K613 Million.
Dr. Musokotwane also disclosed that Ministry of Lands and Natural Resources is owed K442.6 million, relating to amounts owed by those that have been offered land in concession fees under the National Land Titling Programme and Property owners, who have not paid their ground rent.
“We have established that a total of K617.9 million was owed to ERB and K442.6 million owed to Ministry of Lands and Natural Resources. The K617.9 million payable to ERB, relates to license fees owed by ZESCO. This is attributed to liquidity challenges being faced by ZESCO as a result of significant reduction in revenues arising from a decline in electricity generation.”
“Out of the K617 million unpaid licenses attributed to ZESCO, K4.4 million was paid leaving a balance of K613 million as at 4th November, 2024,” Dr. Musokotwane disclosed.
He said ZESCO and ERB have since into a Time to Pay Agreement in order to liquidate the balance of K613 million in six monthly instalments, which started in October 2024 and will end in march, 2025.
“Further, to ensure that the fees amounting to K443 million, relating to National Land Titling and Ground Rent under the Ministry of Lands are recovered, the following is being done.”
“Intensifying Sensitization; Targeting High Value Properties; Bill Distribution; Collection of Ground Rent owed by the Councils; Community Engagements and Distribution of Titles; and, Review of the Lands Act,” he added.
Dr. Musokotwane was responding to Kantanshi Member of Parliament Anthony Mumba, who wanted to know why over K1 billion in non-tax revenues, had not been remitted to the Treasury, as of June, 2024, and what urgent measures are being taken to ensure that the revenue is recovered.
