By Chinoyi Chipulu
Zesco says Zambians will experience 7 hours of predictable electricity supply per day should the utility company raise US$94 million.
In a statement, the Energy Regulation Board (ERB) stated that should Zesco raise US$94 million per month, that is, US$15 million from domestic customers and the balance from other sources, then power deficit will be reduced from an average of 1,300MW to 512MW and hours of power rationing will be reduced, providing consumers with up to 7 hours of predictable electricity supply per day.
“ZESCO aims to import power, which would help reduce the hours of power rationing. The utility is also promoting energy efficiency by encouraging consumers to explore alternative energy sources, such as solar power and gas for cooking. The emergency tariff adjustments are expected to generate sufficient revenue to cover the costs of importing 788MW of power,” read the statement in part,” ERB stated.
The ERB called on the public to send comments on Zesco’s application for the approval of an emergency tariff adjustment on its residential, commercial and maximum demand customer categories for a period of three months.
ERB advised members of the public to submit comments in writing by today before 12:00 hours.
The board stated that public consultation meetings were slated for October 5, in Kitwe and October 7 in Lusaka, offering stakeholders the opportunity to engage with Zesco and express their views.
ERB stated that the Utility’s proposed tariffs were meant to support importation of emergency power to contribute towards reducing the 1,300MW electricity deficit currently being experienced in the country’s hydroelectricity generation plants.
“Due to the country’s dependence on hydroelectricity, the drought implies ZESCO must import power from the region. ZESCO Requests Emergency Tariff Adjustment to Address Electricity Shortfall,” read the statement in part.
ERB stated that customers that consumed less than 200 units per month would experience a reduction in their monthly electricity bills.
“This measure is meant to provide relief to low-income households and thereby ensuring that there is access to affordable electricity. Further, the increase in the electricity bills for customers that consume more than 200kWh is meant to promote energy efficiency among high consumers of power as well as encourage the use of alternative renewable energy sources such as Solar and LPG,” the statement indicated.
ERB stated that the introduction of tariff bands R5 and R6 is meant to avoid a tariff shock and provide a smooth and gradual progression towards cost reflective tariffs.
The board stated that for customers consuming below 500kWh, the proposed emergency tariffs would result in a reduction on their electricity bills between 1 to 15 percent.
“According to ZESCO, this measure is meant to provide relief to the small and medium-sized enterprises (SMEs). This is in consideration of the heightened operational costs due to inconsistent electricity supply to the businesses,” read the statement.
“The proposed increase to this category of consumers is meant to ensure cost reflectivity and guarantee electricity supply to key sectors of the economy,”
This Public Notice and Consultation Paper (PCP) is issued in the interest of best regulatory practice and in keeping with the ERB’s mission to be responsive to stakeholders’ needs and to ensure transparency with regard to the emergency situation and the efforts to manage the energy crisis.
“Specifically, the PCP seeks to solicit input and views from interested and affected parties in order to achieve a fair balance between the interests of customers , ZESCO and the public at large.The input will be considered and form part of the decisionmaking process of the Board of Directors of the ERB,” the board stated.
