On Sunday, the Energy Regulation Board (ERB) approved Zesco’s application to adjust the electricity tariffs by 24 percent for domestic customers and 15 percent for commercial users, with effect from July 1, this year.
This was done to enable the electricity company meet the cost of generation and distribution of electricity to its customers.Many stakeholders have expressed deep regret at this action.
Forum for Democratic Alternatives president Ludwig Sondashi said his party received the news that the PF government had given a go ahead to the Energy Regulatory Board (ERB) to revise electricity tariffs upwards with deep regret. He said what is even serious is that the ordinary citizen would pay more while mining conglomerates would pay less.
Dr.Sondashi said such actions by the PF government can only be described as dishonest because the PF were voted for on the platform of the pro-poor policies and more money in people’s pockets. He said the PF government can simply be said to have taken the Zambian people for a ride warranting the need for Zambians to vote for a political party that is serious with governance matters.
Dr.Sondashi added that the sharp increase in the cost of living that the nation has continued to witness since the PF’s assumption of power coupled with nose-diving of the Kwacha against other currencies is testimony of poor governance by the PF administration.
He said it is for this reason that as the Forum for Democratic Alternatives party, continue to state that our current constitution gives excessive power to the president, affording the president an opportunity to run the country as he wishes.
Reacting to the revised electricity tariffs,Zambia Association of Manufacturers (ZAM) president Bright Chunga said locally produced products will become increasingly uncompetitive once the new electricity tariffs are effected next month. Dr Chunga said the
depreciation of the Kwacha against the Dollar and the recent approval to adjust the electricity tariffs upwards were some of the issues that were making local products uncompetitive.
[pullquote]such actions by the PF government can only be described as dishonest because the PF were voted for on the platform of the pro-poor policies and more money in people’s pockets[/pullquote]
“We call upon Government to help bring stability to the economy. We the manufacturers are doing the best that we can,” he said.
He said players in the manufacturing sector were doing everything possible to grow the economy but that their efforts were being hampered.
Meanwhile the Chamber of Mines in Zambia (CMZ) says it is not happy with the approved upward adjustment in Zesco electricity tariff and has since engaged the ERB over the increase.
CMZ chief executive officer Maureen Dlamini in said the chamber was concerned with electricity tariffs upward adjustment because it was too high and would further increase the cost of operations for the mines.
Ms Dlamini who was reacting to the announced increase in electricity tariff by 24 per cent for domestic customers and 15 per cent for
commercial users said this hike was bound to have an adverse effect on the mines.
“We are concerned with the increase because it is going to further push the cost of operations for the mines and right now are in
discussion with ERB over the matter,” Ms Dlamini said.
She, however, said the chamber was not in position to comment further until after exhausting the current discussion with ERB
The Forum for Democracy and Development (FDD) on the Copperbelt has said the tariff increase would raise the cost of doing
business in Zambia and may result in job losses.
FDD Copperbelt chairperson Yotam Mtayachalo said that some companies may fail to cope with the tariff hike and would cut on jobs as a way to sustain operations.
Mr Mtayachalo said while the FDD agreed that Zesco needed to generate income, increasing tariffs for the clients were not a solution
especially that fuel prices had just been increased and the Kwacha had depreciated against the Dollar.
Mr Mtayachalo called on Government to intervene on behalf of Zambians because the Patriotic Front has always said it was a pro-poor
Government.
More money in our pockets
I can’t agree more with Ms Dlamini. The cost of production in Zambian is skyrocketing out of sight.
First the increase in fuel. Then the plummeting Kwacha against the major currencies to record lows. Now the huge increase Electricity. To these added the haphazard and careless management and mismanagement of the nation’s economy.
Where does the Poor stand in all this?
I watched a ZNBC news clip of adult men listening to another. They clearly appeared distraught, shocked, in shame or even afraid. There is no worse human being than that who does not inspire. Its a shame from which we must rescue our fellow men in 2016.
this govt is showing special appreciation to the poor by increasing the cost of living. It all comes together through the scheme of more money in the pockets of the poor.
Workers must demand wage increases above 100% per year because of the following increases.
ZESCO (24%) + Fuel(12.5%)+ Water (34%)+ Others(29%)
pf at their best of lunacy!
Rural electrification needs your support. Tarrifs are arrived at after adding up all revenues and then subtracting all costs. Please remain dependable and undrerstanding. NW Province must light up now.
HOW ARE WE TO DEVELOP OUR ZAMBIA IF WE CAN NOT SACRIFICE BUT WANT A HAND TO MOUTH LIFE STYLE.
IF ZESCO DOES NOT INCREASE IT’S CAPACITY, HOW ARE WE AS A NATION GOING TO HANDLE THE EVER INCREASING DEVELOPMENT THAT REQUIRES RELIABLE SOURCE OF ELECTRICAL ENERGY. WE HAVE SUCH A RETROGRESSIVE ATTITUDE INDEED.
THE NUMEROUS PROJECTS ZESCO IS UNDERTAKING TO ENSURE ZAMBIA HAS ELECTRICITY IN FUTURE NEED TO BE FUNDED. IT’S US ZAMBIANS TO BUILD FOR TOMORROW.
@Dip Stick; *****; I dont think Zambian’s have a problem sacrificing for the future, the real problem is that of not telling us of the capital projects being undertaken, lack of updates to let us know where we are on capital projects and the lack of accountability, how can u have all the bad things happening to a small economy like your national currency depreciating to record lows overnight, accruing so much debt, your fuel prices going up, your electricity tariffs being adjusted upwards, all this within a short space of time, simply not the way to go…..
The cost of production ever skyrocketing…wafya na panga consumer! these are unrealistic adjustment
There are three reasons for increasing prices.
1. Increase in costs, Such as the depreciating Kwacha causes. And
2. Inefficient operations and management by incompetent people. Or
3. Greedy monopolies supported by corrupt governments.
You tell me which we have in Zambia!???