Announcing the new tariffs to be effected on January 1, 2008, ERB board chairman, Sikota Wina, said the increase in tariffs, fees, penalties and other charges in 2009 and 2010 was on condition that the power utility improves its operations.
Mr Wina said for residential charges the increment would be 26.8 per cent in 2008, 16.6 per cent in 2009, 11.9 per cent in 2010 while for commercial consumers the increment would be 1.3 per cent in 2008, 0.3 per cent in 2009 and 0.3 per cent in 2010.
For power consumers under class MD1 and MD2 the increment would be 16.2 per cent in 2008, 5.5 per cent in 2009, 4.5 per cent in 2010 while large power consumers under class MD3 and MD4 would be 27.5 per cent in 2008, 16.6 per cent in 2009 and 2.2 per cent in 2010.
Charges for other services would rise to 6.8 per cent in 2008, 1.9 per cent in 2009 and 1.9 per cent in 2010.
“Zesco will only access or enjoy indicative tariffs for the years 2009 and 2010 if it meets or exceeds the performance benchmarks. The tariff awards for the years 2009 and 2010 are therefore conditional,” he said.
He said because of the need to protect consumers the approval was on condition that Zesco directed adequate resources to the maintenance of plant and equipment to improve quality of power supply.
The company should monitor and comply with performance benchmarks such as metering customers, reducing system losses, reduce staff costs and reduce waiting time for applicants of new service connection.
“Zesco should furnish ERB within 60 days with a comprehensive plan of how it intends to contain staff costs from the current 49 per cent on the operating budget to 30 per cent by 2010,” he said.
The board also asked Zesco to provide the public with timely notice on its load shedding plans and also abolish staff tariff and apply approved residential tariffs for its members of staff effective January 1, 2008.
On other charges, fees and penalties residential security deposit would increase from K20,000 to K150,000 while for commercial consumers it would be K450,000 from K50,000.
Reconnection fee for residential consumers would now attract a K60,000 fee, commercial clients K150,000 while penalties for illegal re-connection would be K500,000 and K1.5 million for residential and commercial clients respectively.
He said this year’s tariff review had been unique because it was the first multi-year system and had come at a time when there was a looming power deficit in
“This year’s review has attracted more stakeholder interest than any other in the past. A total of 60 submissions were presented to the ERB,” he said.
Mr Wina said Zesco stated in its application that for the year 2007/2008 it would require a revenue of K1.6 trillion of which K695 billion would be used for capital investment.
He said although consumers conceded that there was a genuine need for Zesco to vary its tariffs they were alarmed by the proposed increase which in most cases was over 200 per cent.
Consumers further argued that the bulk of the new demand for electricity was being driven by mines and therefore they should meet the envisaged new generating plants while large power users lamented that an upward variation of the tariffs would increase their production costs.
He said ERB was following with keen interest the renegotiations between Zesco and Copperbelt Energy Corporation because 70 per cent of electricity was sold to the mines although they paid low tariffs.
He added that the national energy policy provided that there should be no cross-subsidisation between different consumer groups and each group should pay the actual cost incurred by the supplier.
Zambia Consumer Association (ZACA) executive secretary Muyunda Ililonga said the ERB should justify its approval by ensuring that Zesco adhered to all the conditions set unlike in the past when these were over-looked.
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“PAKISTAN’S BHUTTO KILLED” Very sad but that is what politics can do.
Its a lesson worth learning about politics and miscalculated dreams for Joze,Pundit, Mutunza,FACT,Chapi & the so called SAGE.Bottom line Sata and his surrogates will never step in Nkwazi house.It takes multiple sophisticated skills and listening abilities to fillers to survive in politics.Signals are sent even here but instead you resort to insults. Time will tell.
“PAKISTAN’S BHUTTO KILLED” Very sad but that is what politics can do.
Its a lesson worth learning about politics and miscalculated dreams for Joze,Pundit, Mutunza,FACT,Chapi & the so called SAGE.Bottom line, Sata and his surrogates will never step in Nkwazi house.It takes multiple sophisticated skills and listening abilities to fillers to survive in politics.Signals are sent even here but instead you resort to insults. Time will tell.
Gunmen opened fire on supporters of former Pakistani prime minister Nawaz Sharif on Thursday from an office of the party that supports President Pervez Musharraf, police said.
This is sad
Anonymous (1-4)
Are these comments of Bhutto related, relevant or in responce to the ““Zesco hikes tariffs”” article? I think not. I suggest you wait for the article to be published and then we make responses and dicuss it ot otherwise find a forum that has it and discuss it there. This section of Lusaka times is for bloggers to respond to the the article.
Zesco should have worked on its inefficience before rushing to hike tarrifs. It’s like the moment they have a shortfall all they think is ; how to exploit a consumer. Surely I disagree this electricity company is complaining about cash when GRZ SAYS ECONOMY is booming. It doesn’t make sense
“6”Please tell me what makes sense in that country?
The money for investment should not have to come out of the pockets of poor consumers. Security deposit for what? The increases on Security deposit are too much. Zesco is being allowed to get away with it..it is a cheap means of getting financed at the expense of poor consumers! Abolishing staff tarrif appears right on, staff have enjoyed this benefit without being subjected to tax on it. Moreover it was an ingenious way of hiding staff costs. Should I begin to think Solar?
The commodity would be bloody expensive. Imagine an increment of 26.8% for residential consumers plus other charges such as security, reconnection fee, etc. That would leave lowly paid civil servants in darkness next year.
As they say you can tell the type of person by looking at their hand writing even before you see them, is very true.
And the bemba saying’ pansaka tapabulwa chipumbu’ on any serious gathering there is always a big fool- is very true with this ANONYMOUS, I can tell the type of person you are and i am not going to answer even if you reply to this one coz you are the big fool for this web site. May God help you.
#9 GLUCO, they are killing you but my dear this is the same worldwide. I think this was the meeting these guys had in Portugal because no one talked about the migration problems apart from Mugabe. But sure 26% is just to high. It must have been done in stages.
jb (10),
Don’t you think you are describing yourself there in view of your incoherence and lack of past intelligent contributions? U-Ever off tangent.Cite one where yours reflect substance and life that some of us have missed.You like it or not, managed Death is rife in the political arena.Had Butho,Chris Hanni,Samora,Savimbi,Nkomo Penza, Paul Tembo, Nalumino Mundia,Gibson Chigaga,Kaunda Junior,Dean Mung’omba apolitical,trust me,they wouldn’t have ended in those Gruesome ways.Keep pretending.
#11 Easy
Maybe we should be starting to look to look at other sources of energy other than hydro eg Solar or Nuclear since we’ve got a lot of sunshine and uranium.
Too bad for activist Bhutto.
Its true because if you have Solar it has a period of 30 years.
Hey can someone confirm I hear Ben is nomore.What happened? Was he sick?
Twafwa napanga, I think I will try solar this time around.
Yaba! I can foresee more illegal connections.
Ne sha bwalwa nasho shachepelako.
……and more deforestation, pantu ine nalayamba ukubomfya amalasha ne nkuni.
But on a serious note; elctricity is like fuel where its contribution to economic development is concerned. There ll be no more single digit inflation, there ll be less money in people’s pockets especially that it is residential consumers who will be hit the worst. I hope we shall see 26.8%(2008), 16.6%(2009) & 11.9%(2010) PAYE reductions by Magande to compensate!!!
#15 which Ben are talking about??? They are thousand of Ben’s in this wide world!!!!
#19 U never know. Maybe Magande runs some business in form of a spa of ba Kamalasha and his business will now boom….hahahaha
Nomba if this trend starts yet the kwacha is stable, next it will be fuel, water, bread….and finally ‘Mugabe’ with the Kwacha itself accumulating more Zeros.
Being a sole major power generating and supplying entity in the country and largely publicly own through GRZ, I expect ZESCO to operate transparently and efficiently. It does not make economic sense that at the time when there is economic stability we should be subjected to 26.8% hikes on electricity tarifs. Why? In my own view, ZESCO is now operating under diseconomies of scale due to its increased size or irrational huge management salaries. I PROPOSE FOR TOTAL RESTRUCTURING OF THE COMPANY.
ZESCO (hydroelectricity) has a very big role to play in the conribution to the fight against global warming (lessening CO2 emissions. what is the Government policy on Energy. In my view, encouraging use of renewable energy such as solar energy should be the wholemark. The ZESCO tariff hikes will contribute 5.2% to the global warming by 2010.
Yes i can confirm Ben Bamfuchile died in the early hours of today (Friday) at a private clinic in Kitwe where he was admitted.
I spoke to Sports Minister Namulambe who expressed sadness over the death.
These ladies advertising their faces here on top,are they more beautiful than our own?
With the hike in electricity tariffs, Fundanga should kiss his inflation targets goodbye. With an end-year inflation of 8.9%, (off target by 3.9 percentage-points), it is sure to go up next year, back to double digits by the end of the first quarter, due to higher costs in the rest of the sectors. That may affect production, resulting in lower value added, so even the projected 7-8% economic growth may not be achieved…and we are wishing each other a happy new year? How ironic!
DAYLIGHT ROBBERY.
I think we need more Electricity supplying companies. The monopoly by by ZESCO its too much.