ERB exclusion of mines disappoints energy expert

Fri, 12 May 2017 11:53:59 +0000

By SANDRA MACHIMA

THE exclusion of the mining sector from the new electricity tariff by the Energy Regulation Board (ERB) makes sad reading because the mines consume more than 50 percent of Zambia’s electricity, Energy Forum Zambia chairperson Johnstone Chikwanda has said.

Mr Chikwanda has however called on cooperating partners such as the World Bank, International Monetary Fund and Civil Society Organisations to take keen interest and stand with Zambians as they seek to implement the new tariff for the mining sector.

He wondered why the tariff was covering all customer categories if ZESCO had not concluded discussions with the mines.

Mr Chikwanda said there was need for a detailed statement to inform the nation why that had not happened instead of just ‘‘glossing’’ over it.

“In supporting the removal of subsidies, our hope and that of the nation was that the electricity subsidy which bulk consumers such as the mines have been enjoying for a long time were going to be abolished this time, but this has not happened and a sad development. We need to be informed of the time frame for concluding this matter,” he said.

Mr Chikwanda said the decision to migrate to cost reflective tariffs was announced last year on the floor of Parliament by the Minister of Finance Felix Mutati, saying it was questionable to note that up to now these discussions with the mining sector had not been concluded.

“The public must be informed, and they are the owners of ZESCO and are the ones paying the subsidies for these mines.

‘‘According to ERB statistics, the mining sector consumes more than 50 percent of Zambia’s electricity, and therefore any electricity subsidy benefits the wealthy mine owners more than other consumers,” he said.

He commended ERB for determining the application brought by ZESCO within such a short time and in approving the new tariff for retail customers, the ERB has given some notable relief to ZESCO and Government at large.

The ERB board has approved the tariffs for ZESCO’s retail customers to be adjusted by a total of 75 percent and to be effected in two phases of 50 percent effective 15th May, 2017, and 25 percent to be effected on 1st September, 2017.

He further said the forum was saddened by the ERB’s refusal to approve ZESCO’s intention to increase the life line band from 100kWh to 300kWh.

‘‘The ERB has made a decision to increase the lifeline to 200kWh. While there was wide support for ZESCO to generally increase electricity tariffs, this has perforated national expectations especially that no increase for mines has been made,” Mr Chikwanda said.