By Jane Chanda and Mubanga Mubanga
ZESCO chairperson Vickson Ncube says the utility company is looking at exploring other options to the current power challenges and its implications for the company’s operations, following the rejection of tariff hikes by ERB.
And Zesco spokesperson Matongo Maumbi says the corporation is currently reviewing the specifics of the Energy Regulation Board (ERB)’s decision not to approve tariff hikes and evaluating its implications for operations.
In an interview with Daily Revelation, Ncube said the board was yet to meet to discuss the way forward following the ERB’s decision.
“We will be meeting as a board to discuss the implications of the ERB’s decision and determine the best course of action to ensure a stable power supply,” said Ncube. “We are exploring all available options to ensure that we can continue to provide reliable power to our customers.”
In a statement, Maumbi stated that as the power utility company continued to navigate this power crisis, the corporation remained committed to employing all available mitigating measures.
He stated that the proposed adjustment was aimed at securing additional power supplies in light of Maamba Collieries Limited’s scheduled annual maintenance and the critically low water levels at Kariba Dam, which could potentially lead to a shutdown of the power plant.
On Friday, ERB rejected Zesco’s application for an emergency electricity tarrif hike on the basis that it would not reduce the loadshedding hours, among other reasons.
Speaking at a press briefing, ERB chairperson James Banda said failure to reduce the hours of loadshedding was of particular concern as lack of stable and reliable electricity had been detrimental to operations.
He said increased tarrifs would inevitably increase the cost of production, which cost would then be passed to consumers increasing the cost of living and ultimately worsening the current state of affairs.
Banda said at national level, an increase in electricity tarrifs would undoubtedly increase pressure due to importance of energy in economic activity and growth.
He said even if Zesco increased tarrifs in order to import electricity to meet its monthly demands, it would not be possible because of suppressed demand by retail and non-retail consumers.
Banda said another reason for refusal was that it would increase the cost of production, which would in turn lead to an increase in the price of goods and services.
