Various individuals and industrial electricity consumers have asked the Energy Regulation Board (ERB) to reject the proposed electricity tariff increase by the Zambia Electricity Supply Corporation ( ZESCO).
ZESCO has proposed electricity tariff increment of between 40-45% for domestic users and 70-75% for the industrial sector.
Zambia National Farmers Union (ZNFU) first vice president, Jervis Zimba said at a public hearing on the ZESCO tariff review in Lusaka today that the proposed increment for the industrial sector is too high as it will have a direct impact on production costs and prices of items in the basket of goods that are monitored for inflationary trends.
Mr Zimba noted that if the cost structure of the Zambian producers becomes unfavourable, this will adversely affect food balance and will undermine the country’s position as the potential food basket of the region.
He observed that there is need to ensure that the cost of power to productive sectors of the economy remains as low as possible in order to derive full benefits from Zambia’s natural comparative advantage in agriculture.
Mr Zimba said that the proposed tariffs should be reversed with 40-45% being for the most productive sectors and 70-75% for non productive sectors.
Mr Zimba charged that the final increase in ZESCO tariffs that will be agreed upon should translate into improved funding for maintenance works at the local level so that the supply of electricity can become more reliable than the current situation.
He appealed to ZESCO to also publicise information on how much the mining sector are contributing in their current electricity tariffs.
Mr Zimba said electricity consumers need the assurance of ZESCO that the mining sector is paying its fair share of the costs of expansion.
And the Zambia Association of Chambers of Commerce and Industry (ZACCI) Executive Director, Justine Chisulo said the proposed tariff increment by ZESCO was too high and too sudden.
Mr Chisulo said that in as much as it supports tariff adjustments, the proposed electricity increments by the power company was unjustified as the cost of doing business will skyrocket.
He advised that ZESCO should among other things try to recover over K300 billion it is owed by various Government agencies adding that even salaries and gratuity it gives to its contract employees should be reduced for the company to manage its operational costs.
Speaking earlier, ERB Chairperson Sikota Wina said that it is the Board’s objective to ensure that quality energy services are provided at reasonable prices.
Mr Wina noted that since its inception it has dealt with more than 10 tariff reviews for ZESCO.
He noted that this year’s review has been most comprehensive adding that it attracted 60 submissions and more stakeholders than before.
Mr Wina further noted that the review has come at a wake of a looming power deficit both in Zambia and in the entire Southern African Region.
Finshi ifi?
Caution mwaice Fact, ngawapula stick to the topic not ifyakucita translate “nkwashi book2” muci Allucakqa blood of Factless. Peace
As far as I know only Robison Mwansa and his predecessor Mr Sikalunzi were the real MDs who knew how the commonman struggle to make ends meet and their increments were reasonable.Surly pipo there is wage freeze in MY country and how come other factors are increasing at abnormal rate?KK used to tell us to tighten the belts untill waists became like wasps and FT
#2 cont..
FTJ also told us to sacrifice of which we did.Now we are in the so called new deal that catch pipo unaware with their deals.Jesus wept.They have sold ALMOST every govt institution that would have been empowered pipo and still sucking them like ticks (badama/impatila)in order to pay back kaloba $32.8 million they got from Chocholis.Mawee mawee,(Cry the beloved country).Only 37% pipo have accesss to eletricity and 5% of it was done by FTJ adm.Let the pipo in Shangomo have power.
Icalo chesu elo capwilililafye nomba, so manje only workers at teka farms will enjoy electricity cos a common man will never afford these new proposed tariffs if they will be implemented.Anyway the govt does not care about its ordinally citizens anymore.Kukosafye manje tucilitulechula under new dealers in govt until 2011, What a govt!!!!!!!!!!!!!!!
Ex-Rhodesia leader Ian Smith is late
Zesco easy! Zambians where are we going? Twalashita ama solar Sisala atumpa notuma light twabula amano. Come on Zambians, About 80% of Zedians are poor, and it is out of this figure you want to take everything. Tell me, are people servicing they bills on time? If not, why? Is it that they just dont want to pay? My dear ERB, WE ARE STRIVING TO PUT MEALS ON TABLE!
That is the problems with these parastatals. They are so badly run and can’t manage their costs and the only way they know how is to pass their inefficiencies to the unsuspecting general public. Cut cost and not just grab money more money from the public simple because you are a monopoly.
Putin attacks ‘jackal’ opponents
Russian President Vladimir Putin has accused opposition politicians of scavenging like jackals for funds from foreign embassies like Zambia’s Michael Sata the a thug for hire.
DAYLIGHT ROBBERY.
Shocking, how can you increase tarrifs by 80%. Something must be wrong with management of ZEsco. Salaries remain the same yet you want double the costs. Pipo are already living on the mercy of God and you want to even take away the little they have. No wonder most adminstrators suffer so much after leaving employment because of their decisions.
This is crazy, crazy! what type of increaments are these? Where is zesco going? Dont we hear that zed exports power, where does that money go to?
This is very strange. There is no reason to why a power company should be increasing the tariffs every year at such high rates. What type of maintenance are they talking about which has not been planned for all along? As #11 has asked, where does the money from all there exports go? Who has bewitched you ZESCO? Its like all you think about all the time is, at how much you should increase your tariffs. THINK ZESCO, THINK!!!!! Sale some of your shares and earn some money you for maintenance.
For a long time, ZESCO has been running on borrowed time. Now its time to own up and pay the bills. I cant see any good solutions outside introducing competition. Overpaid, lazy managers running adverts claiming the cost of electric in Zambia is lowest in the region, dollar for dollar. Not all of us would be economists but what an utterly stupid comparison? If life were that simple, why not equalise prices of all inputs and goods and bring 6 billion people to economic parity.
ZESCO/Min Energy release v.little detailed data so hard to know whats going on. But reality; ZESCO is sitting on huge loan obligations fast spiraling out of control AND average residential consumption (KWh) in Zambia is way out of our economic depth and most people cant pay for what they consume. Then you add their wage bill to complete this recipe for disaster.
Guys how are you all. I have been following up on all comments that all of you contribute to this blog. Big up. But now to some serious issues….this Sisala mwaeba la nikabolala uwapwililika. He has stolen so much that he owns half of Kitwe now. As Zedians, what are we doing about it? Nada as usual but complain and sit down just to see our country go to the dogs. We are a peaceful nation buti guys I think sometimes bu peace bwesu ulatupanga ubupuba. I am not suggesting violence but I think…
….is enough? Zesco director must be looking for a way of paying back the money that he has stolen by increasing tarrifs…80% really. Does he have brains? Kuya bebele including all those who think bringing the Chinese is a solution. Atase!!
This is ridiculous. Do these guys really know what it means to increase tarifs by 75%. Who’s going to be paying all those huge sums of money? Their failure in this regard is abysmal.
I support the tarriff increment only if it applies to the Chinese, Indians, Somalians, Lebanese etc and all the violators of labour laws.
Why Chinese? Thing is you should have been asking China for more and efficient Power capacity instead of Stadium? I see an opportunity to import candles from China (not machinery for making candles!)..and these candles as per chinese quality will melt-out in five minutes. There is lots of potential to tap in Africa fellow chinese. Stick it in!