ZESCO faces $5 million hit for Kariba overuse
Zambia’s electricity provider faces financial penalties approaching $5 million after consuming far beyond its authorized water limits at Kariba Dam through 2025. The Zambezi River Authority projects that ZESCO Limited will surpass its allocation by 4.7 billion cubic meters, triggering penalty charges of roughly $5.1 million based on current usage patterns.
The authority distributed 28 billion cubic meters between ZESCO and Zimbabwe Power Company for the calendar year, with each receiving equal shares. Even a reduced violation of 2 billion cubic meters would result in approximately $3.9 million in fees while preserving only 1.6 billion cubic meters for 2026 operations. The binational agency manages dam operations and river resources along the shared border between the nations.
Drought conditions and insufficient precipitation have depleted reservoir levels, forcing water restrictions to maintain generation capabilities and prevent complete depletion. The authority allocated 30 billion cubic meters for 2026 production, with projections estimating 37.5 billion cubic meters in gross inflows under normal to below-normal rainfall scenarios. Generation limits during January and February 2026 will restrict each utility to 250 megawatts on average, creating a combined 500-megawatt ceiling as the facility recovers during early rainy season months.
