ZESCO cautions of increased load shedding if the proposed tariff hike is not enforced

Written by on April 24, 2019

ZESCO has cautioned that the inability to enforce the proposed tariff adjustments will lead to perpetual load shedding and insufficient capacity to support accelerated economic growth because the country’s tariffs are not cost reflective.

ZESCO Managing Director Victor Mundende says the company is determined to ensure the provision of electricity is not overpriced, but the proposed tariff adjustment has been necessitated by the prevailing economic conditions and with a view to making its operations sustainable.

Mr. Mundende says if approved, the proposed tariffs adjustment would lead to increased revenue for ZESCO with a projection to raise about K16 billion in the first 4 years if the proposed increment is approved by the Energy Regulations Board.

Mr. Mundende explains that Zambia’s electricity tariffs remains the second lowest in the SADC region and therefore, the increment would lead to attracting investments in the energy sector.

He explains that ZESCO is left without a choice but to apply for the proposed tariff increment  as economic factors have not remained constant with economic growth of about 4.1 % in 2017 which has created higher demand for electricity generation.C

And Mr. Mundende says ZESCO has also proposed to abolish the monthly fixed charge which should be priced into residential unit costs for customers to get units for all monies spent for their electricity purchase.

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