ZESCO says the proposed 75 percent increase of electricity tariffs has not been effected.
The Power utility company has proposed to increase electricity tariffs with effect from May 1st 2017.
But ZESCO Spokesperson Henry Kapata says the increase has not been effected because the Energy Regulation Board -ERB- has not held a public hearing.
The ERB will hold the public hearing this Friday to consider ZESCO’s application to increase electricity tariffs by 75 percent to be implemented in two phases.
On Monday, President Edgar Lungu maintained that Zambia has no option but to increase electricity tariffs to save the country’s economy.
Speaking during Labour Day celebrations, President Lungu said increasing the tariffs will be a painful decision but it will greatly benefit the country in future.
The Head of State was reacting to a call by the Zambia Congress of Trade Unions who proposed that Government should consider not increasing the tariffs.
President Lungu says the country’s economy would collapse if electricity tariffs were to left stagnant.
That’s the only thing they know, to increase everything. When are we going to have relief from these increments? The economics we have seen under PF is worrisome and a source of concern. This country is in wrong hands and we are headed for trouble. what a mess. The mines have confirmed that they received the letter confirming that electricity tariffs have increased by 100%. Soon people will be laid out en-mass. We are always moving in circles and no progress at all. Now that the IMF has refused to lend $billion, we are doomed.
@ Abaume….Mukose, Lungu doent know what you are taliking about, neither does he care, he’s got Jemoson on the side table
The only thing I want to know about Zesco is Kondwani Mtonga and Jacob Banda.
What will ERB discuss with ZESCO when the President himself has said that the increase on tarrifs is not negotiable. This meeting will be a waste of time. Indeed Dununa Reverse.
IMF, IMF, IMF.
Tu PF have gone into hiding hey!
Come on Tu PF say something about more pain Lungu wants to inflict on you.
Next it will be wuunga to be increased by 75% along with fuel.
Tiye nayo dununa reverse.
Reducing all unnecessary travels of the presido chakolwa Kadansa and his thieving team of pf will be a painful decision but it can greatly benefit the country now and in future…lol
What happened to the international consultancy employed to look at how the tariffs should be structured. Was announce 5 weeks ago ?
Hehehehe
We told you lungu is desperate for the IMF bailout but that will not happen with his crackdown and assault on democracy…zambia can not have western money and assults on democratic freedoms at the same time.
One thing the PF don’t understand is Zambia can not survive with out western help.
How can you call your self a democracy when the opposition ate not allowed to meet their supporters and opposition leaders are not allowed to greet well wishes in the streets and public places ???
You think the west is turning a blind eye ? You are very mistaken.
If PF had done selective development targeting sustainable job creating projects like producing locally some imports with the aim of moving on to exporting , they could have got away with the assults and violence on democracy. But greed and corruption took over in handing out contracts for anything. Even economically dead roads. And the Chinese were encouraging them in this corrupton.
These people are a big disappointment. its like they have failed to think and come up with better solutions that benefit the people of Zambia. Such a disappointment.
Is that statement meant to make poor Zambians feel better . Like oh we have not yet messed up your lives but soon we will. Pf are failures. Only upnd can save this nation with all your support.
Waste of time attending or submitting anything to ERB over this issue, plot 1 has already decided for the increment!
Wheres the opposition to gain mileage over this??
Think of a poor zambian please
How will the 200,000 jobs be created? lungu is a dreamer. These IMF conditions will kill our country.
– They’ve sold ZCCM-IH for a song to themselves
– INDENI oil refinery & TAZAMA oil pipeline will soon be sold to tu ma chinese
– DeadNBC has been sold to tu ma chinese
– Findeco House has been sold
– Indeco House has been sold
We are doomed by these reckless clueless, bumz.
Increase electricity by 75% is painful to all Zambian otherwise increment is not OK.
Is this not the time to appreciate the need for gas stoves and solar geysers if we are to avoid the pain from this adjustment. Zambians need to look at other sustainable sources of energy. Our priority should be to ensure that alternative energy is affordable.
The effect of this increment will only affect those that will use 300 units and above,and most households use less than 300 units per month and if you go beyond 300 units you will be charged 15 ngwee per unit.In my lay man’s language this is the way I have understood the increment.May be somebody can shade more light on this.THANKS.
It comes to the same thing you increase power and productivity is reduced resulting in reduced GDP that follows the revenues that increases your financing costs and making your balance of payments even weaker in those sectors you wish to grow and activate Essentially by increasing your comparative advantage that exists in the pricing of energy you are simply shifting away the costs to those imports in commodities and energies that can arise as manufacturers and retailers find imports to manufacturing cheaper
You will be importing more commodities as the cost of power marginally increases to competing countries making there industries cheaper than Zambia This…
This will be reflected in the number of firms that will restructure and will hit on the same zesco revenues
You also talk about the electricity per capita and the massive cost of those power plants to be borne and recovered in less than 25 yrs. of plant life its impossible to reach cost reflectivity but a methodology appropriate will reach there You may increase but anything beyond 20% will not be wise
The approach by zesco spokesman as he looks at the cost of energy for households and commercial should be like in an energy mix people consuming other forms of energies will still be on zesco grid for lighting and other and will maintain a mix of others…
like charcoal gen sets and gas so essentially the energy mix expenditure with increment is not reduced by switching from other to zesco or other as people will tend to consume a mix that yields them those desirable Thermal Units so normally what happens is a doubling of cost of energy that strains the natural resources as opposed to optimisation So relook at your Notional cost of those projects in generation ,transmission and Operational and Maintenance and see the sensitivities and see the broader implications for your business and the economy We were together doing press-ups at OYDC wellness event He never said you increase regardless No
Then the…
the graduation of tariff in those bands is not correct and must be recalibrated You may not also do a cost of service study from transmission to distribution in the contract as in the media it has to be a complete interoperability approach covering generation to distribution and must reflect the smart metering in the tariff methodologies being proposed
Then ERB should in the future place a restriction on market players during the period of submission of application publication and final decision to ensure that the collective responses from consumers are not curtailed and contribute to the arrival of what the price/tariff should be acceptable
Finally you will need…
will need to look at it in an integrated energy approach in disposition not the electricity sub sector alone
Any increment above 25-30% will not be wiser for Real Zesco operating Statement and for the economy under these delicate conditions
‘@ UNKNOWN :Thankyou very much for your explanation.
ITS WRONG THEY WILL NEED TO HAVE A LOOK AT IT AND CUMMULATIVELY ASSIGN BANDS APPROPRIATELY
THEN MOST SHOPS OFFICES AND INDUSTRIES ARE STRUCTURALLY ALIGNED TO WORK IN THE DAY SO TO CHANGE THAT STRUCTURE REQUIRES COSTS AND TIME INCLUDING ZESCO INCIDENTIVES
YOU INCREASED YOUR TARIFFS WITHIN YOUR GROWTH IN THE SECTORS FOLLOWING THE MEZZANINE CARROT FINANCING APPROACH WILL NOT SAVE ANYTHING IT WILL ACTUALLY CRIPPLE
A PLANNED SUSTAINABLE INVESTMENTS APPROACH IS WHAT IS BETTER FOR ALL BECAUSE ITS POSSIBLE BUT NOT WITH A SAFE LANDING TO 2050 SO DOING SOMETHING IS BETTER THAN TRYING TO OVERDO AND AVOID TO PRESERVE TO IMPAIR BALANCESHEETS
THE APPROACH…
OF STUDING THE COSTS ,FOCUS ON DEVELOPING THE ECONOMIES AND RESTRUCTURING THE ENERGY METHODOLOGIES WILL SAVE YOU MORE THAN THIS APPROACH ELECTRICITY FINANCING APPROACH FOR THOSE BILLIONS OF DOLLARS UNDER THE FEW ZAMBIAN COMPANIES AND SECTORS
THEN THINKING ALWAYS TO EXPORT POWER IS NOT WISE AS COMMODITIES IMPORTS ERRODES THE SAME ZESCO EARNED EXPORTS REVENUES AS OPPOSSED TO CREATING AND NURTURING THE MANUFACTURING SECTORS TO BE A NET EXPORTER OF BOTH POWER AND COMMODITIES
YOU NEED TO PLAN AND CARRY ALL SECTORS EVEN IN THE FINANCING METHODS WHEN YOU EXPORT POWER YOU SIMPLY WORKING OTHER INDUSTRIES ACCROSS USING THE EXCESS HYDROS THAT COULD REALISE MASSIVE REVENUES IN…
Meanwhile Fupupa is coming to hold the concert in zambia.Check how much you are willing to pay for a single day?
It’s like disruptive thinking In disruptive thinking often see the impact of disruption affecting the whole economy ,to understand the impact of that disruption you need to see on firm level as to the stability of industries and economies
A gradual incremental approach gives a safe landing When you apply disruption you may avoid many pitfalls of this electricity price increase by Zesco