By OLIVER SAMBOKO
THERE is a need for the country to move to cost-reflective electricity tariffs for Zesco to generate funds for investment in repairs and power distribution, says Energy Minister Peter Kapala.
Mr Kapala said the power utility company needs to raise funds through cost-reflective tariffs, so that it is able to maintain its network and serve its customers without disruptions.
He said the country is coming from a background where Zesco has, in the past, failed to raise money for maintenance which resulted in transmission and distribution networks being neglected over the past years.
Mr Kapala revealed that the Cost of Service Study Report is undergoing peer-review and it will be implemented soon to allow Zesco to implement cost-reflective but equitable tariffs that will see cross-subsidised tariffs that charge the haves more than the have-nots.
He said the new dawn administration does not want a situation where, for example, mines who make so much money, are paying less than what a common Zambian pays.
He however said any tariff adjustment should be evidence-based done through the findings of the Cost of Service Study.
Mr Kapala also disclosed that the government has some reservations on the findings of the Cost of Service Study and that the report should be relooked at so that the poor citizens can have affordable tariffs in terms of access to electricity.
He said the government has studied the report and made comments adding that when the Cost of Study Report is finally done and released to the public, the tariff plan will be able to recognise the socio-economic backgrounds of citizens and charge according to their ability to pay.
Mr Kapala said the government wants to see a situation where Zesco customers are categorised so that any increment will be spread across the customers equitably.
“The impact of the increase should be spread in such a way that it doesn’t affect the ability to grow economically. We want the vulnerable Zambians not to feel the increase the most,” he said.
