Think tank, IMANI Africa, has said behind-the-scene events in the power sector are pointing to a likely return of intermittent power cuts or dumsor.
A brief analysis by IMANI Africa’s energy desk suggests that high energy debts could be the main cause of possible return to dumsor.
“The fundamentals of the energy sector looks weak, particularly the power sector is just a time bomb waiting to explode.
“High energy sector debt continues to place constraints on the sector’s ability to innovate and reduce end-user tariffs for consumers,” the think tank said.
READ ALSO: NEW MUSIC: Kvng Phamous- One Day
It adds that “rising debt levels can be attributed to the unplanned procurement of emergency power, political interference in regulatory bodies, high technical and commercial losses, unaccounted revenues, collection rate, and other administrative challenges.”
The think tank notes in the analysis that total government debt owed Independent Power Producers (IPPs) represents approximately 31% of the total energy sector debt and as a result, the Chamber of Independent Power Producers has notified GRIDCo and other power utilities of its planned shutdown until government clears 80percent of its total debt owed.
“In the last four years, the government’s debt owed the IPP’s have grown by $951 million from $270 million in 2016 to $1.44 billion in 2020.
IMANI Africa has said to save the country from another episode of intermittent power cuts, the government must immediately initiate a close working relationship with the Chamber of Independent Power Producers to resolve their grievances, ensure broader stakeholder engagement in the renegotiation process and uphold the principles of transparency and fairness.