Sat, 06 May 2017 15:04:34 +0000
By MUKOSELA KASALWE
ZESCO’S 75 percent tariff increase will create the necessary investor confidence and appetite in the energy sector in terms of power generation, distribution and power infrastructure, says Zesco managing director Victor Mudende.
Mr Mudende said in Lusaka yesterday at the Energy Regulation Board public hearing on its application to review tariffs, that Zambia’s current electricity charges were unable to attract investors in the energy sector as the country had one of the lowest tariffs in the region.
He said it was vital to have regular tariff adjustment even as the cost of service was being undertaken but stated that if the status quo was to be maintained then there would be perpetual load shedding as available power would not meet the growing economy as well as population growth.
Mr Mudende said ZESCO desired to provide ‘‘timeless power and quality service’’ but that it was vital to have a correct tariff which he said would help grow the economy and that the lifeline tariff would ensure that low income consumers were catered for by increasing 100 units to 300 units per month at 15 ngwee per kilowatt/hour.
“The 75 percent tariff will help create the necessary investor confidence and appetite in the energy sector in terms of power generation, distribution and infrastructure which will support the growth of the economy,” he said.
He said Zambia had numerous attractive power projects such as the Kafue Gorge Lower, Batoka and others in Luapula but that they would require more than US $10 billion in investment, hence need for a correct tariff, saying it was prudent to invest in the country’s own power generating plants.
But NGOCC vice board chairperson Mary Mwale and other submitters such as Ruth Hensen a Livingstone farmer opposed ZESCO’s application, saying it was too high and that it would result in rampant deforestation as a result of consumers resorting to using charcoal.
And ERB acting chairperson Francis Yamba said the authority would ensure that it took into account the public submission on ZESCO’s tariff application.
Prof. Yamba said the board would move expediently and announce the tariff decision in the quickest possible time to avoid unnecessary speculation.
