Friday, March 29, 2024

ZESCO to hike electricity prices

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Zambian state power company Zesco Ltd. plans to hike prices for electricity by 17 to 33% from May to raise money for reinvestment in the sector, it said on Wednesday.

“The adjustment in electricity tariffs is a vital part of ensuring that electricity supply is secured and national development is sustained,” Zesco said in a statement.

The price increase would not affect the mines whose power costs were increased by 30 % last year under a separate agreement with the Copperbelt Energy Corporation (CEC).

Zesco said the price of commodities such as copper, aluminium and steel, used in the manufacture of spare parts and machinery, had pushed costs up.

The depreciation of Zambia’s kwacha currency over the last three years also meant Zesco had to spend more to purchase materials, it said.

Zambia’s electricity supply will remain tight for the next four years, casting a shadow over the power-intensive mining sector.

The Energy Ministry estimates generation capacity will not exceed projected demand until 2015.

[REUTERS]

44 COMMENTS

  1. Its ok so as long as it is meant for the development of the country. Electricity supply must outstrip demand. Of course we must ensure that ZESCO doesnt exploit the pipo, using tarrifs money for the workers personal emoluments. Politicians must not be allowed to deter progress coz of fear of losing support. Zambians stand and fight for your rights

  2. They only increased prices sometime last year (well maybe a year and half ago) by around 25%. Now another increase?

    Sure sounds like a lot less money in my pocket!

    And look at that picture – five guys in a tuck to do a job that I’m sure could be handled by two. Let’s be honest, this increase is more about protecting ZESCO’s bloated workforce than rising commodity prices or currency depreciation over the last three years (…although maybe currency depreciation over the last three months is another story?). 

    • i am laughing especially on your comment on the five guys on the truck…do you know how much work goes on with electricity?take a day out one time and see how much these people really work.not typing somwehere from your office thinking everyone has an easy job like you

    • Well, about a year ago we had 10 guys show up to place 40m of armour cable for which we had already dug the trench. I guess that makes:

      1. The supervisor
      2. The guy to do the work
      3. The guy to carry the cable from the truck to the trench
      4. Another guy to help carry the cable
      5. A guy to fix the hacksaw blade
      6. A guy to use the hacksaw
      7. A guy to be in charge of the insulating tape
      8. A guy who is on training
      9. A guy to do something else (sorry I’m running out of ideas)

      and of course…

      10. The driver since none of the other 9 can drive.

      And to think, we waited 2 1/2 years for the cable – so do you suppose the workforce might have been used more efficiently?

      Next question: how many guys from Zesco does it take to change a light bulb?

      Sorry friend… smile!

  3. Mines rates increased by 30% last year, then imwe since namukwata ‘more money in your pockets’ 33% this year.

    The ‘chinese’ had a smaller increase, compared the Zambians

  4. this is total rubbish.they raise tarrifs all the time and yet services do not improve in any way. this should not be accepted.

  5. That is rubbish,its too much of zesco increasing their tariffs. we have had enough and theirs services dont improve, load shading evry day

  6. Zesco, you should have been the most cost competitive company on the African continent, but you are not. The cost increase is nothing but a reflection of your inefficient management as seen in delayed project planning and implementation, poor service seen in unreliable power supply and worse still: lack of corporate strategic planning. You have been in existence for a long time, but have failed to increase capacity to match population increase and increased economic activities. This is the cost that we the poor citizen have to bear. I weep.

  7. I also strongly call this as RUBBISH. Mines = 30% while poor Zambians = 33%. All the commodities will go up wen ths is effected. Can some1 say its more money in our pockets or is it more money in the foreign investers’ (miners) pockets? To Zesco is only accurate/fast wen it comes 2 LOAD SHADING.

  8. This is total rubbish. Zambians should not allow this blatant abuse by ZESCO just because of their monopolistic advantage. This company belongs to Zambians and should not exploit Zambians. Zambian customers have done their part by paying their already too high tariffs and its now up to the current government to finance the re-capitalization programme. It does not make at all for a commercial entity to supply rubbish to its customers and ask them to pay more for the improvement of  supply later.
    Ba ZESCO this we will not allow-enough is enough

  9. Zesco should ensure that people on FIXED RATES have the prepaid METERS they applied for in our homes. Some of us have been leaving or filling forms which are followed up. Hope you also reduced on log shading

  10. Actually ZESCO needed to increase by 40%. The majority of Zambians now have more money in their pockets, so they can afford to pay. You can’t have everything for free bafikala…

  11. We need Zesco to instal prepaid meters in our homes as the applications have been pending for a long time. Before they hike these RATES.:((

  12. This has been long over due….. Zambia has the cheapest tariff per kWh but almost the same generation cost as compared to other countries in the SADC region. # 11xtramature, Before you open your mouth do some research. In Zambia, we are paying almost half the price per kWh as compared to SA and they increase on average 25% per annum.

  13. iwe shi PF sapota.do not bring in rubbish comparisons here.Did SATA not open his big mouth that he will reduce all these costs during campaing.Why didnt you adivse him on stupid analysis of yours since you are PF supporter. How can a WHOLE GOVERNMENT SWINDLE ITS ON PEOPLE…….. ma Rubbbbbish

  14. Apapene? they just hiked last year. What do they think we are made of money? they want to buy new cars? This company needs to be unbundled into more efficient packages. Twalaamba solar.

  15. The cost of fuel was reduced for operations hence the reduction in the cost of transformer oil, this also applies to the fleet of their vehicles (transportation costs).
    Someone to shed more light on this exorbitant increase in tarriffs which is the exact opposite to the salary increaments we are receiving ( 9 to 13% increament).

  16. Please ZESCO, how do you hike the tariffs only to invest the proceeds? Why not float the additional capital requirement on the local bouse, the Lusaka Stock Exchange [LuSE], so that , as new and additional investors, your Client general public can also benefit from from the expected fortunes of your expansion programme, if any at all? Why not simply admit that you are making losses on your current operations and that you just want to reduce your reported losses – what of the bad debt you are incurring from the non-paying public sector, Goverment, and the huge administration expenses there being incurred on the under or rather uncapitalised rural electrification programme. ZESCO, please come clean. As your client and, possibly, prospective shareholder [ investor], I want to know.

  17. @ PF Sapota. Every Zambia loving citizen will support the PF’s cause, but that’s not to mean that you refuse to think reasonably. So what if Zambia has the lowest power rates in the region? So, we should increase our power rates to match with the rest? And you call that research? Then I say to you that you should think after doing your research. It seems common sense is eluding your grasp. We love the current gvt but Zesco is a failure which we hope the gvt will look into. Zesco is busy installing fibre at millions of dollars which is just an example of a misplaced priority, I repeat MISPLACED priority. You don’t brag about exporting power to Mozambique & install fibre at millions od dollars at the expense of the locals, NO my brother. Please, learn to think. Viva PF!

  18. If don’t Kubeba increases our salaries by 33% and reduces unemployment by the same 33% then there is no problem

  19. Ba PF Sapota. Iwe, i think u r an mmd cadre masqueradin as pf. pliz, can you be more reasonable. u seem short sighted…. sorry to say but even shallow minded. just saying… no offense meant :). ni donchi kubeba ise!

  20. with inefficient services, over employment poor or no capitalization and obsolete equipment at least its owned by zambians i guess. who care about all that? 

  21. You own it, so increase your monthly ‘investment’ by 33%.
    Now, dont get pedantic with me, be a proud owner, next week Zamtel will be waiting for your investment as ‘owners’.

  22. Can someone explain Why Chinese don’t pay PAYE tax but they work on Zambian soil? Check ZRA payroll system, Check Huawei, zte and chambishi mine payroll systems at ZRA. Its unfair.

  23. I see similarities in the quality of service provided by Zesco with that provided by Zamtel before it was privatised! Thank God we have our Zamtel back so that we can have another company to complain about besides Zesco.

  24. Ala is not ZESCO who was giving free gysers and reduced connection fee under MMD, nalelanda ati its political, teyapa nomba balefwaya impiya sha reinvestment. So baletubepa?! GOD BLESS ZAMBIA

  25. Oh where’s my gas cooker and solar lighting, why don’t we push for more coal production from Maamba for our cooking? Thank God Zambia does not have a winter to talk about, if ZESCO had a second name it would be sakala.

  26. So you moroons want Zesco to charge less than they are spending on giving you power. At the moment they are not even breaking even. Were do you expect Zesco to get money to sustain its operations? The days of sugar coating situations are over.

  27. This in NOT on. Switch off zesco for a bit here. You are increasing power at a rate more than the inflation rate? Is this what the “more money in your pockets meant” Is was not the people of zambia’s pockets but politicians and businessmen.

    @ PF Sapota … why not increase at the inflation rate? If you really need this increase, do really think ordinary people will afford electricity. Zesco is still state-owned they finance this operational costs Government helping them, re-structure the company, etc.

  28. u pipo shud understand the prevailing economic scales to upreciate what goes on in running a coy like ZESCO .Dont just yap any howly

  29. The idea of charging dollar prices on Zambians that receive kwacha salries is definitely not on. The cost of living should always be in line with what people are attaining as remuneration from their employers. This idea of hiking prices for the consumer is just nonesense. It will make perfect sense if the people consuming the high power are the ones that pay for it and not the ordinary consumers. The mines should be the ones to pay more. Besides, if the cost of metal prices is an underlying reason for the hike, then the people mining should be made to pay.

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