New plan to help SMEs adjust to tariff hike

Sat, 17 Jun 2017 11:18:51 +0000

By BUUMBA CHIMBULU

GOVERNMENT should provide a clear three-year plan for phasing in any electricity prices adjustments for Small and Medium Enterprises (SMEs) to allow them plan their businesses, suggests Policy Monitoring and Research Centre (PMRC).

The centre, in its new report on electricity tariff reform and the impact on poor households and SMEs, recommended that Government should set a three-year electricity price plan for the sector to support their businesses.

PMRC head of monitoring and research, Akabondo Kabechani, said SMEs were striving to expand their businesses as electricity tariff adjustment was properly phased. Mr Kabechani said guaranteeing electricity price increases would result in increased security of supply.

“Some of the conclusions and policy recommendations for the reports included considering subsidies for alternative supply as a temporary mitigation measure. “There is also need to create the conditions for successful reforms by setting clear remit for the Energy Regulation Board (ERB) to consider the importance of energy supply in their deliberations on electricity pricing,” he said.

He said some of the results in the report were providing an open and transparent case for change, with a clear offer to consumers. Mr Kabechani however said price increases needed to be matched by improved energy supply, saying neither businesses nor consumers should not, and would not, accept paying a higher price for an unreliable product.

He said there was need to do more target reduced rates on those who needed them most, specifically by re-designing the proposed electricity tariff increases to replace the universal lifeline tariff policy with a targeted usage based lifeline tariff.