Energy Minister Dora Siliya says Government still plans to raise power tariffs to levels that reflect the cost of supplies after it withdrew the hikes this year.
ZESCO last week withdrew its application to raise charges for households, businesses and factories after the Energy Regulation Board approved the tariff hike in December.
Ms. Siliya was speaking in an interview shortly after she featured on a panel discussing energy shortages and potential solutions at the Energy Indaba held at the Sandton Convention Centre in Johannesburg, South Africa on Tuesday.
“We are trying to balance economic issues with social issues and clearly the political leadership feels if there are public complaints, we have to respond,” Ms. Siliya said.
“Now that does not in any way mean that we have shifted from the idea of moving the tariffs from cost-reflective levels, no. We just said that maybe we need to do it in another way and move them progressively,” she said.
The country remains committed that “for us to sustain the energy sector, we have to have cost-reflective tariffs,” Ms. Siliya said.
She said pricing has been the main challenge in encouraging solar-power projects in the southern African nation.
She said ZESCO had rejected the 12 U.S. cents to 15 cents per kilowatt-hour potential solar-energy providers were offering three months ago.
Ms. Siliya revealed that ZESCO has indicated it would only be willing to start talks with solar companies if the price was less than 12 cents per kilowatt-hour.
And the Energy Minister has disclosed that the government has made a down payment of about $22 million to Karadeniz Energy Group, the Turkish supplier of powerships, for a vessel that will dock off the coast of Mozambique and provide Zambia with 200 megawatts of emergency electricity.
Ms Siliya said the ship is on its way and a transmission line is almost complete. These supplies will cost $18 million per month.
$22 million just for down payment, how much will Zambia pay for that electricity coming by boat?
$22 million for emergency electricity, what emergency? $22 million.
$22 million deposit to a Turkish strange company. Of all countries.
@ Nostra
Just give Edgar and PF a yes vote and ask questions later….follow what the Pope said
2016 vote PF ( Edgar )
I thank you
WE KNOW THAT SILIYA! WHO DOESN’T KNOW THE TRICKS OF PF BY NOW. THIS HAS BEEN DONE TO GAIN POLITICAL MILEAGE OF WHICH ZAMBIANS ARE SMART BECOZ THEY WILL CHUCK YOU OUT OF POWER COME AUGUST 11.
Typical Doche Kubeba. Poor Zambian voters do not know what is coming with this style of leadership which is shifty at every corner. Zambians, you now have MMD back in power, this is exactly were the country was before August 2011, where Dora was ranting about ZAMTEL, only that now she is ranting on ZESCO.
Huston
@ katondo boys.
“Huston we’ve had a problem.” – Apollo 13.
“Vatican we’ve had a problem.” – Zed 14.
POP: What problem?
EL: Ship has drifted off target uncontrollable from docking port, and is stuck. No development!
POP: What docking coordinates did you use?
EL: We lost the codes together with Captain Chilufya at end of first jubilee, 2014, so i entered my own codes – 2014/ EL / PF
POP: What were the coordinates that docked Political independence, a jubilee ago?
EL: 1st J / 1964 / KK / UNiP
POP: Thats were the problem is. The codes automatically upgrade every 50 yrs, like computer software.
EL: What codes should i have used?
POP: 2nd J/2014 / HH / UPND
EL: Why?
POP: 2014 / HH / UPND is an Upgrade of 1964 / KK / UNIP…
…
POP: 2014 / HH / UPND is an Upgrade of 1964 / KK / UNIP because:
1) 2014 minus 1964 equals jubilee. God restores something every 50 yrs, if our free choice allow him.
2) Symbolically, H is an upgrade of a seemingly lame K. H is also a basic unit of a ladder. Scientifically, HH is the basic unit of DNA double helix structure.
3) Mathematically,UNIP / UPND = I/D. I for Political Independence, D for Economic Development modules.
El: How do I get this ship out of this mess?
Pop: Better late than never, Hand over the Captaincy to the real Jubilee President on 11/H. He is the one to stir the ship out of troubled waters and dock the development module safely to station Zed .
EL: Was my mission a success or a failure?
POP: “Successful Failure” for Apollo 13…
…
POP: “Successful Failure” for Apollo 13 mission.
“Perfect Failure ” for Zed 14 mission .
Something doesn’t sound right about this 200MW emergency electricity. Assuming they signed a 24 months contract, government will pay $432M plus the down payment and whatever other balances. This whole amount is enough to build a new 350MW Power plant.
Dora Siliya at it again. Remember the Zamtel deals she cut back then with RB’s son? Deja vu
Comment:Does it mean that the pf has sold power for 22million dollars to use for campains, or it has alread put aside that amount and make deals for processing the papers then money channelled for campains? Hiking electricity is not the ans you ar distablising us voters how can you bounce back to power in that situation.we poor zambia ar majority voters and in war it is. us to go. so be careful pf.
Any vote for PF is a vote for 400% electricity tariff increase after August 2016. I hope Zambians are not that stoopid considering that they were failing to pay the old tariff.
#ChagwaMustFall
Time for Politicians to take heed. They are several better ways to cost a product. Adding Incompetence, pilferage and imprudence to reflect cost is not one of them, as it will only bring more suffering to the ordinary people.
Who is telling the true on this matter of electricity,the President and Minister says we shall increase the tariff then ZESCO says we have withdrawn the application and when is the ship going to Dock when it started off in Novemeber 2015?
Now the water levels in Kariba have increased let us stop this nonsense of load shielding for now otherwise lies have short hands soon the truth will be seen.
The truth is that PF now realise that nobody can pay their tariff. To even have a slim hoping of winning over voters, that is why PF have forced Zesco to reverse the tariff. But if PF win, they will see it as a vote of confidence and increase tariffs by 400%.
#ChagwaMustFall
Maamba Coal mine will spend 47m USD on a plat to supply about 300MW in the nation grid. Workout your maths how much the country will generate if she used that money to constract more Maambas.
Comment: Sudan, who told you that the water levels are normal? You are just another Nawakwi.
Comment:Ladies and Gentlemen if u are trully a UPND supporter by now u shud be on a lookout for TIMOR C onsulting company no matter how much u complain,but as long as we complain about the zesco tarrifs dis PF regime will increase them no matter what,so if u trully care about dis country let’s be on a lookout for TIMOR Consulting company their are upto no good
Let them increase them tariffs it is no longer an issue with us. We are staying days in a row without power in Mtendere east and yet Mtendere and PHI have power. So Dora, what makes you think I will vote for the PF when things are the way they are? All of you are not looking at a plight of a common Zambian, but your own selfish interests. After August I promise you Dora it will be court time for most of you, therefore be careful.
You must be a bitter chap from the South!
Who would not be bitter to be forced to pay 4 times for little or no power supply? Only a stoopid thieving northerner would applaud such a silly situation.
Hahahahah Efintu ni lungu its funny how some zambians celebrate mediocrity
Comment:Electricity tarrifs increased,Mealie meal prices k95,Water rationing,incresed prices of Goods ETc those are some of the things that some zambians have gotten used to
@Ba Zambia
You don’t live in Zambia do you?
Anyway…do what the Pope said..
2016 vote PF ( Edgar )
I thank you
Comment:Wanzelu must hear dis
Edgar…”requestdockingcoordinates”
Pope Francis….”recalldockinginstructions”
Just in time….the ship will be at the dock before August 11…no need to worry about Zesco Tariffs now..”my accountant handles that…..
Hey my fellow PF supporters please fill free to start celebrating…..50%+1…it’s a done deal….
2016 the Pope said Ifintu ni Lungu
I thank you
The minister of energy and the government have absolutely no clue how to solve electricity crisis. The government is just spending money like a rich fool on projects that will add no value. Dora is not the right minister for the Ministry of energy. She appointed unqualified directors save one to the Board of ZESCO. The current load shedding is due to technical incompetency. How can unqualified directors give guidance to ZESCO when they do not have hydro operation excellence – eg. how can any reasonable government build generator at Kariba North Bank to 1080MW when the designed capacity for each bank is about 700MW? 380MW excess could have been installed at Kafue or Batoka, to serve water & generate more power; limiting load shedding to minimum. This is the main reason which caused low…
Comment:Viva HH
Can PF make ONE decision which will last for more than 3 months?
Yes! Rooting.
11/8 pf is packing. It is us Zambians to vote pf out, the Pope is not on our voter’s register.
Yah PF kuya bebele. Even you guys that will form the next government, any stupid moves you also pack just like PF.
offer solutions not always behaving as tho its not your country. You cant win by not facing reality.
The obvious solution is to kick out this incompetent and thieving PF govt.
#ChagwaMustFall
Ok, according to the Post Headline today, no such company exist in Turkey, does it mean we have been dubbed of our hard earned $22 million. Anything done in desperate measures costs 100 times more. Here we go, we have lost our cash.
Market economy or social economy? In the market economy, the price of goods and services will be determined by market forces. In the social economy, the price of goods and services will be determined on the basis of social demands. In a developing country, or in an economy in transition, it is politically incorrect to withdrawal subsidies abruptly. This is particularly true of staple food items and energy. There is need to subsidize electric power, fuel and water to create a strong social foundation and political stability.
First Do the Correct thing First Do a Study of Economic Impact of Hiking Electricity Tariffs n Zambia Simulate the Percentages and methods whether Gradual or Sudden Shocks
Please also see and understand that the COST OF SERVICE STUDY was for ZESCO cost of doing business On a Firm wide Basis That is what the document tries to show ITS THE COST TO ZESCO be it revenue or cost model It was sponsored between Zesco and ERB
Now before the tariffs can be increased to economic reflective levels LRMC ,ERB should initiate a Study to back the migration to cost reflectivity THIS STUDY IS NORMALLY THE ASSESSMENT OF ELECTRICITY TARIFF HIKES on…
the individual firms micro and Finally Macro Level and see the LRMC to various sectors that gives you the Leverage to increase the tariffs matching the Zesco Potential 6000 MW generation mix capacity to customers measuring up to that OPEX and CAPEX
Differentiate between ZESCO COST OF SERVICE STUDY AND AN INDEPENDENT STUDY TO BE SPONSORRED BY ERB TO JUSTIFY THE IMPACT AND INTENSITY OF ELCTRICITY TARIFFS IN CONSUMPTION BY ZESCO
WHICH ONE COMES AFTER OR SECOND BUT REVISE THE COST F SERVICE STUDY THOUGH ALSO IS OVERDUE
Okay yaa that is the point and correct way For which firm it has to be tendered and the best that understands the structure of the sector orientation of Zesco Visa its Cost of Service embedded in the Tariff structure should be able to do it within time It becomes better
Any well researched local Zambia I would not recommend but any from Delloites OR Pwc or others well research to help make effective tariff decision
…………
EL: Why?
POP: 2014 / HH / UPND is an Upgrade of 1964 / KK / UNIP because:
1) 2014 minus 1964 equals jubilee. God restores something every 50 yrs, if our free choice allow Him.
2) Symbolically, H is an upgrade of a seemingly lame K. H is also a basic unit of a ladder. Scientifically, HH is the basic unit of DNA double helix structure.
3) Mathematically,UNIP / UPND = I/D. I for Political Independence, D for Economic Development modules.
El: How do I get this ship out of this mess?
Pop: Better late than never, Hand over the Captaincy to the real Jubilee President on 11/H. He is the one to stir the ship out of troubled waters and dock the development module safely to station Zed .
EL: Was my mission a success or a failure?
POP: “Successful…
Is this story true? 200MW from a ship? Is the ship nuclear powered? $18 million per month supply of electricity? How do waste so much money? Zambia is doomed!
We told you this. ..those who supporting what the utterly lazy bum in State House when he had reversed instead of reducing. ..
That emergency power will be used towards elections. be rest assured that there will be no power shortages 2 months before elections and then after you vote for EL again, you will go for longer hours without amalaiti and the tariffs will be increased to 400%. Advice: use your brains before you cast a vote.
This President you call EL akamilisha amafi bafi****ala.
Increasing Zesco tariffs gives me a rash. I don’t like it one single bit. How bad do you Energy chaps want to hurt my feelings? It’s just that I don’t have any other political choice. I guess I will have to upgrade my alternative power sources. Iwe Dora, I don’t like the sound of this. Yes Zamtel is in bad shape because of you.
I apologize that I have not read all comments posted and someone may have suggested this already.
Would it not be cheaper and more sustainable to construct large commercial solar buildings to distribute energy/electricity? How long will Zambia be able to afford $18 million dollars a month? Has this been provided for in the budget? Where would the money come from?
People in Zambia need to change how they perceive the gov’t. The gov’t can’t provide all things all the time. You must support the gov’t in times like this by a positive attitude. We must weather all hardship with a tough spirit. This is our country, our problems. We can’t be remote from our gov’t. In any case when needs must…as the expression goes. We must raise those tariffs at the right time if we need to. For poorer households, maybe we need to have some subsidies…where to get the tax for that…?