Zambia Association of Manufactures (ZAM) President Dave Barbbar says the proposed hike of electricity tariffs will have a negative impact on the country’s economy.
Mr.Babbar told ZANIS in an interview, today, that Zesco limited should consider revising its proposed tariff hike considering that the world is facing an economic down turn.
He said if the company proceeds with the hiking of tariffs it will slow down developmental projects that the company might be undertaking.
Mr.Barbber said the increase of electricity tarrifs will further slow down production in major companies like the mining industry adding that they require electricity to operate.
He called on government to consider the impact this development will have on a growing economy like Zambian’s before consenting to the idea of hiking the tariffs.
Mr.Barbber further said that if the electricity tariffs are increased to over 60% it will mean that manufacturers will increase the prices of their products as well thereby making it difficult for the people of Zambia to access these products.
He further added that most Zambians are living in poverty and the increased tariffs will make it impossible for most families to pay for electricity bills.
Zambia electricity supply (ZESCO) the only electricity provider in Zambia has proposed to increase its tariffs to over 60% for both commercial and private use.
The idea has been welcomed by the Zambian government and it is likely to come in to effect by April this year.
ZANIS/PC/ENDS/MM
Somebody has got to stop ZESCO from increasing tariffs. First they should cut down their salaries especially of top management. Its total non sense that as Zambians we should continue paying high tarrifs just so a few can have hefty salaries.
We can just keep on paying more and more for the poor services that Zesco is providing…..enuff is enuff we need voices that will speak for every Zambian….if no measures are taken soon to ensure that all of us are getting quality services in this country i’m affraid one day the ticking time bomb will explode!!!! ZEDIANS LETS SPEAK OUT!!!
I agree with you Jazzie Jazzie, Zesco’s staff are among the top paid in Zed….QN is what are they being highly awarded for?! They should be seen to work for their money….
No matter how much Govt defends this proposed tarriff hike, i say it is not fair! Just where is the justification. Imwe bantu, Zambians are already overstretched as things are. What do you want us to do kanshi? Tizidyana??
PRESS CLIPPING:
Reporter: Can the Govt really justify the proposed electricity tarriffs by ZESCO, your Excellency?RB: I really don’t know how many times you want me to say this, but the answer is simple. I don’t know! Njazi, Kaleza kanin’gambe. Napali mwana wangu Temwani. However, let me thank the Zambian people for electing meas their President last year. As you all know, i have only been in office for only four months.
Why is it that every time Zesco want to repair the machines they turn to ordinary Zambians. People have lost jobs more especially here in the Copperbelt, yet they want to squeeze the already suffering poor zambian poeple. They had paid out K 1000,000.00 as bonuses for their workers and yet these some workers they dont even pay electricity in their homes. How long, n I repeat for how long are we going to continue suffering. Mr Managing Director Sisala, if you have failed to run the orgnisation just resign on moral grounds. We are tired mwe,
#5 Ba Moze,LT is a shushus site.Havent u wondered why wen one says sumthing negative abt the F-o-o-ls party (MMD) they dnt post the comment? Be on the look out,u risked being banned bt for real tht Rb is capable of saying that pantu hes owez in his slumber.A leader owez sleeping wen God does not slumber
Zoe, i have not posted anything that would warrant LT banning me. However, LT is at liberty to do as he pleases, after all it is his site mama. What is wrong with my ‘Press Clippings’? LT himself enjoys them, Ka LT?
#7 zoe I thought LT was a PF site.but if its MMD can they please be as efficient in runing the country as they are the Lusakatimes lol
I think the soulution lies in diversification of the energy sector and probably having people who understand matters relating to energy at ERB. At the moment I do not think there are people you can think of as having an idea about energy. We have coal, rapids and small waterfalls, our neighbour TZ has some natural gas. So why dont we think setting up coal-fired power generation, microhydro power generation and combined heat and power (CHP) generation? The problem is that we just look at what short term measures. We can start implementing that in yearly or bi-anually. Even the issue of total black-out we experienced would be minimised because of diversified sources of electricity
I wish someone out there is considering for the poor as it is now things are bad, its not fair , when Sisala, RB and the rest are haing meals everyday and others are not, if people cant afford to buy mealie meal, are they going to manage the 66% tarrif hike. Shame on the govt for not considering other people but only themselves, anyway God will help us through, but will punish the wicked
Is there any person who can speak for the poor? COZ THIS IS NOT FAIR
Current investment environment has been that power tarriffs in Zambia are too low to attract investment. It would taker over 50 years to break even fo a company that invests into power generation. Unless this issue is addressed power cuts will continue and will get worse as no one will invest in new plants. Its a tough choice for Zambia. But certainly increasing tariffs will help albeit sacrifice by current consumers. Otherwise money will need to be found somewhere else. I wonder what other options are. How much can be saved by reducing Zesco manpower? Zesco needs to show they are becoming more efficient. Last time I read, ERB castigated them.
I would like to add my view to the proposed hike in tarrifs by ZESCO. In the first place the timing is not just wrong but Totally out of touch with the reality (there is an economic crisis) and secondly the percentage (66%) is unacceptable, imagine the millers doing this to the price of mealie meal? We need a better service from ZESCO and i accept that for that to happen ZESCO has to increase the tarrifs BUT not at wrong time like this and surely not by 66%. Govt & ZESCO you are there to serve the people dont exploit us at a time when many of our brothers and sisters have lost their jobs.
Bob Doe,if i say anything against PF, LT is fast in posting it and if i say MMD is a F-o-ols party awe sure no posting,my comment will not show.Balipena ba LT
IF people can afford Malasha which is 100 times less efficient and 10 times the cost of Zesco power, they will surely manage to pay. What people fail to ask is why the increase and how is this in other countries near near. Its not about salaries for Zesco employees!
The ZESCO tariff increase is really complex. Currently Zambia is in dire need of investments in power. This will not only increase ZESCO efficiency; attract private investments in energy but will also reduce power cuts and match the growing demand for power in other sectors. Otherwise at current power levels and tariffs the economy cannot expand. 66% increase is also because the hike has been long over due. Postponing the hike increases the percentage hike required. However, the best is also to look at how the impacts of this increase could be mitigated through either tax reductions to manufacturing, PAYE or any other more practical way.
No one seems to care about the well being of the ordinary man out there! Even with the so called hike, nothing will change. In fact, the rich get richer and the poor, poorer. Theoretically, it makes economic sense but knowing this govt….awe sure!
~16 Try Malasha and 17 Observer.
Spot on. Those are good points. Actually charcoal is even more expensive when you include the cost of environmental degradation. We need to move the whole country from charcoal to electricity, which is cleaner and sustainable.
Unless we invest in power generation, the future will be worse than what we have now.
On “Mr.Barbber further said that if the electricity tariffs are increased to over 60% it will mean that manufacturers will increase the prices of their products as well thereby making it difficult for the people of Zambia to access these products.
He further added that most Zambians are living in poverty and the increased tariffs will make it impossible for most families to pay for electricity bills.”
Mr Barbbar is very very extremely right. This idea of increasing the electricity tariffs by 66% will not help any Zambian at all or even ZESCO itself. Let economists give ZESCO the trends from models so that ZESCO and the Bank of Zambia governor can think properly on what they have…
Do we want to go deeper into loadshedding? If we do not want to pay for that commodity, who will? These are difficult choices that Zambians have to make.
This matter has nothing to do with the perception of high salaries that people have. The investments required in this business are in billions (US$, not kwacha) and it has nothing to do with coal, gas solar or anything you may call diversification. Hypothetically speaking, even if you laid off Sisala and his entire workforceat ZESCO and made the company run on automatic, it is doubtful that you will save enough money to build new power stations. Try the numbers and you will agree.
For a long time Mr Barbar and others have accepted all cost increments on fuel, taxes, transport costs, fertilizer, talk time etc but not the cost of electricity. Electricity also needs investments just like any other business including Mr Barbar’s. Just who is supposed to pay for investments in electricity? The baseless objections of Mr Barbar and his colleagues over the years has simply postponed the problem to now when it is most inconvenient for Zambians. But it has to be done now because there is no more time to waste.
Investment in ZESCO is welcome. Let salaries also be increased by 66% this will balance the welfare equation.
Some day, there will be someone who will take the interest of Zambian Citizens into the whole matrix of economics.
The current leadership will carry a permanent scar to their graves for lack of attention to the needs of the citizens.
God Help Us and give us Umbi Umuntu!!! Definately not the presents crop.