The Economic Association of Zambia (EAZ) has urged the Zambia Electricity Supply Corporation (ZESCO) to take into account the plight of Zambians as it increases electricity tariffs.
EAZ Publicity Secretary Francis Chigunta said although the proposed 66 per cent Zesco electricity tariff hike will help enhance investment in the country, the company should not consider the plight of the ordinary citizens.
Dr. Chigunta, who is also University of Zambia (UNZA) lecturer of Developmental Studies, said in view of the financial meltdown facing the country, a tariff increment of 66 per cent would have a negative impact on the lives of poor Zambian.
He said although the electricity tariff hike is long over due, the power utility company should come up with a certain way in which the tariff hike will be introduced in order to cushion the impact it would have on the citizens.
He has since urged Zesco Limited to effect the electricity tariff hike in a gradual manner so that citizens were not burdened with a huge increment at a go.
Dr Chigunta told ZANIS in an interview that it would be important for Zesco to take into account the fact that the majority of Zambians were poor and therefore, an adjustment in electricity tariff will negatively affect the people.
The proposed 66 per cent electricity tariff hike by Zesco has been received with mixed feelings from different sections of society.
Government has however welcomed the move while some opposition political parties and civic organizations are opposing, claiming that it will negatively affect the poor people.
ZANIS/PM/KSH/ENDS
Why not raise their incomes instead? The electricty price hike is inevitable.
The 66% increase will not even attract investment, I don’t know what angle the good doc is seeing this from. High tarrifs translate into high production costs which are already very high. This will mean cutting down in production levels and leading to lower power consumption. This now translates into reduced revenues for Zesco which they can only make up for through another increase in tarrifs and the cycle begins…….The answer lies in Zesco transforming itself, improve on service delivery and re-structuring of the work force, cutting off execess costs, management stopping awarding itself collosal and undeserved allowances and ultimately, FIRING SISALA. Full Stop!
I really question the economic precedent zesco used to increase the tariff by 66 percent.Zesco should not make people sholder or pay for their inefficiencies.Zesco as a parastatal and financed by taxpayers should not punish its owners but serve them.
Charle, you must be a very inconsiderate person. I wonder if you can give your excess to the poor
We are living in dengerous times people a lot of things don’t make sense.
#4 Big Thing
What makes you think I’m inconsiderate? My message in #1 is directed to the “big bosses” who uphold poverty by subjecting people to low wages.
Stay blessed.
Nine Chale and Big thing you are both correct. Difference is that since you are in Germany Mr. Chale you have seen how wages in the western world are awarded to us on merit and inline with the constitution. While Mr. Big thing while in Zambia is seeing the true suffering of our people. So in my Cabinet Nine chale is minister of Finance, while Mr. Big thing minister of Technology, to bring about the implementation of cheap sources of energy; and better export systems of our electricity. Myprayers for you both.
#7 Truth…
I’m humbled by your solomonic wisdom.
Thank you for your prayers and stay blessed too.
#8 Nine Chale You are welcome, I get wise after repenting. Repent always, pray without seizing and as a man work hard to provide for your family.
power cut price increase hahahaaa pa zedi!
What I know is that for INVESTMENT to thrive, the recipient country must make all resources comparatively cheap ie low pay for manpower, low taxes, low tarrifs etc. One example is the failure of the airlines due to expensive aviation fuel. If it wasnt for Mugabe, Zim could have been a paradise for investment due to low charges on resources.
The other point is if we are faililing to pay our bill at the current rate, how does Zesco expect us to pay them at the new rate. Zambia has failed to realise its full pontential because the nicompoops that we trust to run our affairs seem to live in a dream world.
I see the fact that we need to make a decision on whether to expand this industry or not. Yes the ineffeciancies of ZESCO need to be dealt with but so does the issue of the tarrifs , if we do not sort these out , we will continue talking of the gr8 potential that Zambia has in hydro power, Lets make the painfull decision now, for future generations. Presently ZESCO is supplying at below cost and of course someone has to pay for the subsidy. So it will either be goverment as the expense of drugs, education roads. ETC its a tough decision that we need to take or ZESCO by borrowing from banks .
So lets try to look at the logical business sense and not the emotional point of view.
#13 Oscar but the same GRZ uses money and other resources from Zesco to finance MMD election campains. You may not believe it but wait until they are no longer in power for what will come out. This is the reason why the cannot fire certain individuals lest they reveal all these misapplications
Zesco must be restructured,streamlined and reorganised before Zambians can concede to these outrageous tarriffs zesco is asking for. At the moment Zesco is very inefficient,overstaffed and extravagant on salaries and allowances it lavishes on it’s senior managers and Directors.Let’s be realistic, I bet you even if this tarriff adjustment is effected,Zesco in it’s current form won’t achieve any of these pipe dreams it’s advocating for the tarriff adjustment justification.It will continue asking for more.Lastly,let Mr. Sisala rest,he has no innovative ideas to offer.Advertise his job and you shall see compentent Zambians step up to take up the mantle.No political appointments,please!
Hey my man de ja vu yes government does misuse mony and that should be sorted out. So lets break down the various issues (1) management Sisala has an interestt in CEC _ he got to go (2) Ineffeciency in ZESCO I feel we should advertise internationalyyf or a management team kind of lto restructure ( LOITA does for financial institutions )and give them terms of refernce with nenchmarks, t(his would mitigate goverment influence) with the intention of so making they a public limited company. (3) Revise tarrifs so we come to regional or as they say cost reflective measures. That will enable ZESCO to gain enuff for re investment and sort out their billing problems etc. Statisticsdo seem to indicate that ZESCO is suplying
Figures seem to indicate that ZESCO is supplying below cost, but admittedly the figures are not conclusive. I would request for more infor before I agree with the 66% . But i think we should agree that if it is establisehed that even at effecient levels we are underpaying for ZESCO then we better adjust tarrifs. If not who do we wnt to subsidise. ( it will end up being the tax payers)The other issue is there is talk of attracting other investors and it is said thatone of the conditions is higher traffics so that it can make bus sense. The challenge will be ensuring central goverment doesnot chew the money, > Tarrif adjustment in itself is not a bad idea