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Zambia’s Zesco seeks to renegotiate power tariffs with IPPs
State power utility Zesco is seeking to renegotiate its power purchase agreements with independent power producers (IPPs) in an effort to curb its ballooning debt. At end-April 2019, Zesco owed IPPs about $680m, and the company says low power tariffs mean it has little hope of reducing the burden.Zesco sought to raise tariffs in March, but on 3 May, energy minister Matthew Nkhuwa announced that President Edgar Lungu had directed that Zesco’s application for a tariff increase be suspended.
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