ELECTRICITY TARIFFS TO GO UP

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………As ZESCO applies to remove residential and commercials customers from fixed charge

Staff writer

LUSAKA, ZAMBIA– Zesco Limited has applied to the Energy Regulation Board – ERB for the revision of rental electricity tariffs for various customer categories.

Zesco Managing Director Victor Mundende says the application for tariff adjustments has been necessitated by economic conditions such as inflation, base expansion among others.

“The tariff revisions over the last few years have not kept up with the rising cost of generation and have led to ZESCO’s declining financial position and failure to achieve price equity between the end use tariffs and the cost of from IPP’s,” says Mundende.

Mr Mundende says if approved, the new tariffs will result in increased revenue for ZESCO making become profitable.

“The increase in revenue will enable the corporation to be better able to meet its rising cost operations and simultaneously attract additional private investment into the Electricity Supply Industry thus making the sector and the company more competitive,” he said.

In the application ZESCO is also proposing that the fixed charge be priced into unit charges for residential and commercial customers for them to start getting units.

“It is hoped that the removal of the fixed charge will enable customers to properly budget for their electricity purchases and not find themselves with unsustainable arrears,” he added.

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