THE Energy Regulation Board (ERB) has approved Zesco’s reapplication to hike electricity tariffs with consideration of tariff affordability, the impact of load shedding on Zambians, and the utility’s financial performance and viability.
During a briefing yesterday, ERB Board Chairperson, James Banda elaborated more on the board’s reconsideration.
Banda said Zesco being the major supplier of power in the country, it is impossible to ignore the devastating effect that the drought has had on the Utility’s generation capacity and its revenue.
He said that currently, the power deficit has increased from 900MW to 1,300MW, consequently increasing the hours of load shedding forcing the board to approve the utility’s application with the well being and benefit of Zambians on its back.
Banda explained that in their application, Zesco proposed to reduce the tariffs for some residential and commercial customers, which will provide relief for low-income households and Small and Medium Enterprises (SMEs) as tariffs will be affordable too.
He said this measure will also assist in alleviating any huge financial impact that would arise from the increased tariffs as they will enable Zesco import sufficient power for the industries to ensure that these productive sectors remain sustainable during the Emergency period.
Banda said with the current 21 hours load shedding which has seen a reduction in revenue generation for struggling businesses due to the increased power rationing, Zesco is now committed to reducing hours of load shedding and publish predictable load shedding schedules.
“This reduction will provide relief to households and businesses. Additionally, it was submitted by businesses during the public hearings that the cost of running diesel generators is way above the proposed tariff adjustment,” Banda said.
Further, he explained that the utility’s financial review indicated that it does not have adequate resources to finance the additional power imports.
“Therefore, there is need to support the Utility to raise the required funds to meet its funding gap for urgent importation of additional power aimed at alleviating the load shedding situation,” said Banda.
By Buumba Mwitumwa
Kalemba October 11, 2024
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