ERB NODS ZESCO TARIFF HIKE

Sikota Wina

The Energy Regulation Board (ERB) has approved Zambia Electricity Supply Company (ZESCO)’s request to increase electricity tariffs by 25.60%.
This follows ZESCO’s earlier application to ERB to authorise the increment of electricity tariff of up to 36% which the power utility company proposed.
ERB Chairperson Sikota Wina announced the adjustments at a Press briefing in Lusaka today. Mr. Wina said the board arrived at its decision to approve the 25.60% increase after considering submissions from both the power utility Company and the general public.
He explained that the new tariffs would take effect from August 1st, 2010 to 2011 and would be applied according to customer categories.
Once effected, residential customers would be paying K376.09 per kilo watt hour representing a 41% instead of the 69% tariff increase which ZESCO applied for while large power consumers would now be paying K320.54 per KW hour representing a 12% increase.
For the small power consumers, the tariffs have increased by 15% equal to K280.32 per KW hour instead of the 14% the utility company applied for.  27%increase has been slapped on commercial customers and 33% increase would be effected for the services tariff.
The Board Chairperson hoped that ZESCO would generate adequate resources to operate commercially and profitably after the 25.60% tariff increase.
Meanwhile, the board has recommended that Government should consider recapitalising the power utility company if it was to operate efficiently saying that it was under- capitalised.
The board has also observed that ZESCO’s receivables were still high and that Government should liquidate the debt it owes the power utility company.
Mr. Wina further added that ZESCO should accelerate the installation of pre-paid meters in all Government departments and urged the company to be proactive in debt collection.
He stated that it was imperative that the tariffs in the country were cost reflective to encourage more investment in the energy sector especially in light of the power deficit.
And speaking in a separate interview, ZESCO Managing Director Ernest Mupwaya said the power utility company was happy with the approved tariff adjustments.
Mr. Mupwaya noted that the increment would help the company cover operating costs and serve its customers more efficiently.
ZANIS