By Chinoyi Chipulu
The Energy Regulation Board (ERB) has approved ZESCO’s application for emergency electricity tariff adjustment for a period of three months.
This follows an application by Zesco to help alleviate some effects of the drought such as prolonged hours of load shedding.
The utility company aims to raise US$15 million monthly from retail customers to contribute towards the importation of 788 Megawatts of power to mitigate the current loadshedding.
At a press briefing, ERB Board Chairperson James Banda said the approval was with effect from November 1, to January 31, 2025 when a contract renewal would be reviewed.
Banda said the board came to this decision after the utility company assured of a proposed reduction in the tariffs for residential R1, R2 and Commercial C1 Customers, which would provide relief for low-income households as well as Small and Medium Enterprises (SMEs), and ensure that the tariffs were affordable to this category of consumers.
“As Zesco is a major supplier of power in the country, it is impossible to ignore the devastating impact the drought has had on it. The review of the application also took into consideration ZESCO’s financial performance and viability, and projected incremental revenue from the emergency tariff,” he said.
Banda said the increase was also expected to promote energy efficiency among consumers.
“Further, the review considered the impact of load shedding and affordability of the tariffs by the consumers, as well as Government’s desire for security of supply,” he said.
Banda said Zesco should prioritise power purchases provided it was cost reflective when compared with Southern Africa Power Pool (SAPP) and other sources.
“The power utility is expected to adhere to the load management plan and is also expected to give weekly reports to the board pertaining to the revenue among other agreements,” he said Banda. “Zesco should also adhere to load management schedule and ensure a maximum of 17 hours of loadshedding.”
