Energy union welcomes Zesco 75pc tariff hike

Mon, 24 Apr 2017 10:38:07 +0000

By MUKOSELA KASALWE

THE 75 percent electricity hike by ZESCO will recapitalise its operations, modernise existing electricity infrastructure and attract investment to support new power generation projects, says National Energy Sector Allied Workers Union general secretary Manson Mutambo.

Mr Mutambo said the cost of power generation, transmission and distribution, in addition to the technical, commercial and administrative operations that make ZESCO meet its obligations to customers outweighed the revenue being realized from power supply at the current tariffs.

In an interview yesterday, NESAWU said it fully supported the intention by ZESCO management and the Government to increase electricity tariffs by 75 percent which would apply to consumers who would use 300 units or more per month.

He expressed confidence that by migrating to cost-reflective tariffs the electricity company would manage to recapitalize its operations, modernize existing electricity infrastructure and attract investment for new power generation projects to support Zambia’s flourishing economy.

“NESAWU fully supports the intention of ZESCO management and the Government to increase electricity tariffs to cost reflective rates,” he said.

Mr Mutambo appealed to Zambians to support ZESCO’s intentions to increase electricity tariffs to cost-reflective rates saying it was the only way for ZESCO to attract new investment necessary to expand power generation capacity to meet the ever-growing demand.

He said the move would give customers cause to hold ZESCO to account should inefficiencies continue.

He however expressed hope that ZESCO would deliver to customers’ expectations knowing the capabilities and focus of the Victor Mundende-led management team.

NESAWU has appealed to the Energy Regulation Board (ERB) to ensure that the proposed electricity tariff hike did not harm emerging micro enterprises, commercial farmers and rural dwellers who were being connected to power through the Rural Electrification Authority.