An oppsitioin Parliamentarian in Mufulira district on the Copperbelt Province has appealed to the Energy Regulation Board (ERB) not to accept ZESCO’s bid to hike electricity tariffs by over 60 percent.
PF Kamuchanga Member of Parliament (MP) says the decision was not only far fetched
but one that lacked merit.
Ms. Masiye said this in an interview with ZANIS in Mufulira yesterday in reaction to
sentiments by the power Utility firm which has applied to the ERB to adjust retail
tariffs for power.
The MP noted that instead of increasing electricity tariffs, ZESCO should instead
intensify its efforts in recovering its enormous debt owed to it by some
uncompromising energy consumers.
She added that ZESCO should alternatively reduce on its power exports to
neighbouring countries if at all it was becoming extremely expensive for the power
firm to
meet local electricity demands.
Ms. Masiye added that the majority of Zambians were too poor to afford the
unreasonable and unrealistic tariff hikes being proposed by ZESCO.
She suggested that if ZESCO was having problems internally, the firm should instead
embark on a restructuring exercise other than spilling over its problems to
innocent consumers.
Ms. Masiye noted that customers were already overwhelmed by persistent load shedding
adding that customers had already consumed too much of ZESCO’s seemingly
inefficiency to warrant a tariff increment.
ZESCO Limited is quoted as saying the depreciation of the local currency by 53.6
percent between the year 2000 to 2004 and then the appreciation of Kwacha by 24.7
percent had negatively affected the firm as this had eroded the value of
electricity.
ZESCO in its latest bid to hike tariffs is also contending that it has become
increasingly expensive to maintain and procure imported spares and equipment.
ZESCO needs some real surgery. Clearly this story doesnt reveal much, but a stronger Kwacha should hurt exporters, not importers. However, a 54% depreciation 2000-04 plus an appreciation on 25% gives a 29% overall depreciation. And ZESCO tariffs have gone up more than a couple of times during this period.
ZESCO is a ticking time bomb.
ZESCO should be thinking of ways expanding thier services if they want more money. By increasing the tariffs, they are just contributing to the spreading of poverty in the small nation. They are slowing down the common man’s development process. They should think of other ways of earning their required capital and service funds. They have a lot of well educated individuals in ZESCO, what are they all doing? Ms. Masiye pointed out the problem of persistant load shedding.This should not even exist in the modern world. But it has existed for too long. Is it that all the ‘big brains’ and experts in ZESCO have, up to now, failed to find ways of constant power supply? Why are the experts just sitting around and thinking that what they have in spply is the best?