ERB approves ZESCO’s application to hike electricity tariffs by 75 %

78
5,002 views

ERB Board Chairman Francis Yamba
ERB Board Chairman Francis Yamba
The Energy Regulation Board (ERB) has approved the application by ZESCO to increase electricity tariffs by 75%.

The adjustment will be effected in two phases of 50 percent effective 15th May, 2017 and 25 percent to be effected on 1st September, 2017.

ERB Acting Board Chairperson Professor Francis Yamba has told a media briefing in Lusaka today that notwithstanding the uniqueness of the application by ZESCO, the board
considered the application with particular attention to the tariff justification and assumptions, financial performance, electricity demand forecast, customer comments and the need to progress towards cost reflective tariffs.

Professor Yamba has also disclosed that the board has directed ZESCO to improve on its Key Performance Indicators (KPI) so as to offer effective services to customers.
Professor Yamba says the boarder has also ordered that ZESCO adheres to legal provisions that guide tariff application in accordance with the provisions of the Electricity Act, Cap 433 of the laws of Zambia and set ERB Tariff Filling Guidelines that outline the procedures to follow when applying for a tariff adjustment.

He says ERB has further approved the revision of the residential tariff band and that the board has also ordered that the fixed charge component for residential consumers is not changed.

Meanwhile the Energy Regulation Board has rejected ZESCO’s proposal to change Time of Use (ToU) tariff discount and premium to reduce the discount on the off-peak and charge from 50 percent to 25 percent as this would make it less attractive to the current enrolled customer.

Professor Yamba says the board has further rejected the application by ZESCO to introduce a surcharge on energy consumption during peak times on both energy and capacity charges.

78 COMMENTS

  1. more money in lungu pockets,zambians brave yourselves for more hardships,those who can afford go solar.

    0

    0
    • There is nothing wrong with this.

      This is a working Govervrnment and their judgement and assessment should not be questioned.

      Go and an education or better job if you want to feel like these hikes are peanuts like some of us.

      I have just completed my PHD.

      Thanks

      BB2014,2016

      0

      0
    • The begining of hard times for the dancers in the name of pf supporters. And when IMF is done with Zed the poor will be left nothing.

      0

      0
    • Why don’t increase tarriffs for PF carders only. This is what they voted for even to the extent helping manipulate the elections. Let me dance to the economic tune while lungu enjoys champagne. Lungu is incompetent its not that we don’t like man. All this is to raise money to pay the external and internal debt lungu and his people misused

      0

      0
    • @ Mushota says “This is a working Government and their judgement and assessment should not be questioned.” This is just one of the reasons we remain docile as citizens. How can someone in their right mind ascribe to such reasoning?

      0

      0
    • IMF can now smile as they now have security to their loan, the $500 million p.a. that government spends on electricity subsidies. Well done guys this is a milestone (at least for those of us who understand economics).

      0

      0
    • Dununa-dununa iiiiyeee! aaaayeeeeeee……. dununa iiiiiyeeee…..dununa reverse. i like it. don’t complain. You needed it. On labour day celebration, Lungu answered ZCTU president Chishimba that he would go ahead to increase electricity tariffs even when it meant voting him out in 2021. this shows how uncaring Chakolwa is. pliz continue hammering them. i don’t care bcoz i depend on solar energy for all my use. Dununa them on fuel also.

      0

      0
  2. It will be sad to see them increase their salaries and buy new fleet of vehicles than the intended purpose. Also hopefully there will be no increases again after September.

    0

    0
    • Thats wishful thinking they will push to more than 100%…the visionless Bums have strategy.

      0

      0
  3. If this Lazy Bum Edgar did not cower two years ago …prices would be cost reflective by now but due to elections the Bum shelved it. When I read World Bank was investing in Solar Energy in Zambia I knew it was just a matter of time and this increment will be increased by 100% by December.

    0

    0
  4. And what about the monthly staff allocation which is in excess of 2000 kW/units, couldn’t the nearly 10,000 employees sacrifice in line with the majority Zambians.

    0

    0
    • Zesco is not cutting back yet wants to increase…typical of a poorly run govt entity and a shambolic regulator in the name of ERB which is full to rafters with dull grade 12 cadres. They should give Zesco a “carrot and stick” approach of motivation…cut back on excesses across the board.

      0

      0
  5. Cost reflective tarrifs will minimize wastage and save the nation billions of kwacha. What is key though is how the savings from subsidies are used, an accountability issue.

    0

    0
    • Point, Munone. Zesco have to prove that this increment is justified by improving their management and accountability.

      0

      0
    • In theory yes…but this is an utterly reckess govt, remember that sink fund for the Eurobond announced by Fossil Chikwanda!!

      0

      0
  6. Zambia is a cassava economy where a price hike of 75% is acceptable! There is no economy in the world that can absorb a price hike of even 20% in a critical sector such as energy.
    We are aware that since 2011, ZESCO has been absorbing large quantities of PF cadres in jobs that do not exist. Private forensic audits show that human resource costs at ZESCO account for over 65% of all costs. Inneficiency, corruption, PF party costs, thefts by employees, entitlements by management account for other large costs.
    Prof. Yamba is a highly respected professional who should not hane been invoved in this chicannery, even for the allowances and perks.

    0

    0
    • We have too many educated fooools in Zambia…look at what happened at ZRL, the so called Professors got on each other throats and burnt the whole house down in the end they were left with nothing.

      0

      0
    • The problem with you opposition donkeys is you believe everything your failed leaders tell you, not everything is politics. This increment is long overdue as it is an impediment to investment. Do you know the owners of the Maamba plant produce a kw/h at about 25c a unit and Government through ZESCO has to supply you and me at about 9c per unit?? Which investor would want to invest in power generation in Zambia with that fake deal?? Which creditor would lend ZESCO money?? Sometimes you need to think for future generations not your dogmatic narrow tribal view of the country!! i recommend you study PMRC statement and analysis on this issue.

      0

      0
    • Zambian citizen

      “….long overdue as it is an impediment to investment….”

      But this is what you PF kaponya theives told us when we were paying for the most expensive roads per km in the world.

      Blowing 10 billion in the process yet not one investor has come ???

      0

      0
    • Do you donkeys read what you post?? or you do it just to be a source of irritation?? I really can’t see the connection with roads and ZESCO??? You really blog a lot of rubbish and your contributions lack substance . As I have said above, not everything is political. You need to analyse the matter at hand and give a constructive view of matters…donkeys will be donkeys…

      0

      0
    • Zambian citizen

      PF kaponyas are du.ll for sure…nowounder the economy is as it is…..we all remember the kaponyas singing of how investors will flood Zambia once we build the most expensive roads. Not one investor has come.

      Now you are telling us the same thing with expensive electric price hikes. Ati Investors will comeuuu.
      We have heard that story before from you theives.

      0

      0
    • What is wrong with the economy?? Investors coming in doesn’t necessarily mean the economy is doing well. What about the existing investors expanding their operations-ZB has just opened a malting plant in Zambia, we dont have to send malt to Zimbabwe anymore?? Mopani and FQM have invested more in their new projects and KCM is about to invest massively in their expansion project. Dangote is also on expansion pathwith a sugar investment in the pipeline. All this investment and many more will be complemented by the new power generation projects of Kafue Lower and Batoka.

      0

      0
    • Ati Many more, where plezzz ???

      Those are existing investors and some projects initiated by MMD.

      Zero investors have come after you stole 10 billion building roads. Nothing….zero only shopping malls.

      0

      0
    • Look at this kaponya , ati

      “..What is wrong with the economy??”

      So you think lungu is raising electric tariffs by 75% for fun or mutati following IMF every where because he is a fan ??

      0

      0
    • …yes, donkey, existing investors just like I said but they are expanding operations, right?? Expansion is not cheap. KCM last month was explaining that they will spend $2bn plus to fund their new mining project. Is that change from a piggy bank?? Yes, there is nothing wrong with the economy, did you know exchange rate was at k9.25 to a dollar today?? The exchange rate has stabilised and will drop further. How can I panic that the economy is bad????

      0

      0
    • Those are investors brought in by MMD and RB bwana.

      Lungu and PF have lementebly failed to bring investors. He was hellucenating about 500,000 jobs in 2016 but what he heard was 500, 000 tons of malt to make beer.

      He goes to France to pick a decoder for France 24 and he hellucinates about airbus becoming Zambia airways…

      He goes to Saudi Arabia he starts hellucenating about fuel at 5 kwach/l.

      He goes to Israel he sells the remaining part of the mines……

      0

      0
    • @Zambian Citizen: you seem to be the Donkey here for failing to understand the economics in the SADC region.Why would an Investor invest in Zambia if the cost of doing business is higher than anywhere else else in SADC? Why do you guys think you can fool Zambians because of lack of exposure? Let’s all push to leave a better Zambia-for our children regardless of our political affiliation. This blind support is going to kill the future of our children.

      0

      0
  7. IMF written all over this. A normal Zambian politician can never do this. This is killing people.

    0

    0
    • Thats because you are enslaved in your minds and you elect lazy **** in office who hoodwink you into thinking that silly prayers will sort out your issues!!

      0

      0
  8. Hehehehe

    if lungu spent as much time and energy creating jobs as he does feeling paranoid and fighting democracy and free speech, Zambia would not need these price hikes.

    Time to dance again……music pleas…..

    Dununna reverseee yeyeeee……dunnuna….

    0

    0
    • …yaba…typical donkey comments…how can a company invest billions and hope to make a profit if they are selling their product below production cost????…to you, everything is political….

      0

      0
    • What below production costs…..if all GRZ PF kaponya employees and ZESCO workers paid for eectrcity that ZESCO will run at a profit.

      0

      0
  9. ERB are they crazy? Where on earth do you see an increase in the price of a commodity by that margin?

    0

    0
  10. Good night mwebantu. I am going to sleep now. I hope that this is just some nightmare that will go away when i wake up mailo..

    0

    0
    • This is issue will be waiting for you in the morning, its not going nowhere…this Lazy sausage Edgar and his empty tins have been playing hot potato with this issue for far far too long putting political agenda over economic strategy. Once you decide to go in bed with the devil World Bank you can not simply chipante like you do with those ill-thought out statutory instruments you toss about like confetti at wedding party.
      Good Night and Good morning!!!

      0

      0
  11. No this is not right, the govt doesn’t have to resort to this! This will have a terrible ripple effect as many other services and goods will as a result be increased simply because some advisors lack a broad sense or practice operative effectiveness! The “think outside the box approach” is seriously lacking here! Stop buying new Luxury SUVs, cut allowances for top officers across different govt depts and institutions Zesco included and we can save millions of dollars in just a few months but advisors continue to turn a blind eye to practical operative effectiveness!

    0

    0
    • I know some one who works in the judiciary, lives in Lusaka , has house allawance paid but has a room booked permanently at one of the hotels in Lusaka all paid for by the tax payer.

      0

      0
  12. @8 Braxen, but you have been refusing or postponing cost reflective tariffs for more than ten years. Now you pay in arrears, that is why.

    0

    0
  13. To PF cadres, anyone with a different view is Tonga. These id10ts make me sick. weshamo ulakula yee!

    0

    0
  14. @Spaka lile lilo Yes…its dununa reverse at work and us PF voters are very happy because we now have power 24/7 in our homes.
    PF is wise Govnt.MMD spent 20 yrs in power minus investing in power generation,hence Zambia experiencing worse load shedding recently.but PF is correcting those mistakes.moreover,its clear here that home tallifs will remain unchanged.
    UPND MUST KNOW THAT DAILY POLITICKING WILL NEVER WIN THEM ANY ELECTION.WE SUFFERED A LOT WHEN LOAD SHEDDING WAS AT ITS PEAK,SO LET INVESTORS COME INTO POWER GENERATION SO THAT ZAMBIA CAN START EXPORTING POWER.AS LONG AS I HAVE POWER IN MY HOME 24/7,THEM AM 100% HAPPY WITH THIS INCREAMENT!!!
    Well done PF.they say “uwakwensha ubushiku bamutasha elyo bwacha”.Very soon Zambians will appreciate this move which is looking bad…

    0

    0
    • Njimbu

      “….SO LET INVESTORS COME INTO POWER GENERATION SO THAT ZAMBIA CAN START EXPORTING POWER…”

      That is exactly what zambians were told by the PF kaponyas theives when we were paying for the most expensive roads per km.
      10 billion US in the red later and not a single investor, only shopping malls.

      0

      0
  15. Watch closely and observe the Butterfly Effect of these these tarrif increments on the rest of economy.

    0

    0
  16. Ati more money in your pockets kikiki dull chaps mukose

    0

    0
  17. A 75% hike is a pro poverty hike.Industries will move to countries like Kenya or RSA and more Kaponyas will now henceforth live in the dark where they can get mugged.
    Meanwhile this PF regime is only hiking our economic output by a lowly 3% a year.

    0

    0
  18. @22 Mzambia, how can industries move to Kenya and South Africa where electricity tarifs are still much higher than Zambia? You a donkey?

    0

    0
  19. So what would HH have done if he had won, reduce the price by 50%? He is an economist didn’t you say?

    0

    0
  20. This is how Lewis Mosho will succeed in getting the $17,000,000.00 he was promised and share with Lungusha, I do not know why Zambians are blessed with short memories and short sightedness. How can Lewis attract the so called investors who promised him the aforementioned money?

    0

    0
  21. ********** just have to comment on anything including stupidi.ty. I bet when they go to the toilet they also condemn what comes out of their backsides. Donkeys awe twacula, keep him in correction another 30 days.

    0

    0
  22. You Mushota you have completed you PhD in what? I guess it’s in f***shness. You comment’s and knowledge about politics and business are below a PhD graduate….learn how to research and posted sensible comments on the topic. Don’t respond like a voicemail, think clearly.

    0

    0
  23. By the way the European Union amvassadors to Zambia last night affirmed that their relationship with Zambia was “very strong and dynamic and we shall continue to support the government of Zambia in development assistance”. Now ********** that is a strong message in answer to UPND, so which donors did you say will deny Zambia aid because of HH? Like I said before they are probably happy that HH has been tucked away in a correction facility. Look here donkeys, do yourself a favour, HH is special to you fellow donkeys but not to foreign capitals and majority of Zambians.

    0

    0
    • Hehehehe
      But the kaponyas really fear HH , even when he is in prison and the topic is about electricity price hikes it Is HH this , HH that …

      Take it easy kaponyas. you Your lungu do not have to feel inferior and paranoid while HH is locked up, advise him to try and create jobs now maybe he can think straight because if you chaps are still hellucenating and jumping about HH while he is away nothing can help you …… ..

      0

      0
  24. Clifford bwalya its not a nightmare just have a nice sleep tomorrow strategize how to survive brother

    0

    0
  25. @Spaka like lilo: go and ask Dr Guy Scott (who supported HH in 2016),who has been advising PF Govnt to hike the price electricity to improve the economy.Dr Guy Scott and many others have been pushing for this for quiet some time now as way of ending load shedding.JUST FEEL SORRY FOR YOURSELVES IN UPND AS WE STRONGLY BELIEVE IN OUR PF!!!NOMATTER HOW YOU RANT,WE CANT VOTE FOR HH’S UPND IN 6.5 PROVINCES!!!
    soon Zambians will appreciate the removal of subcide from electricity because our tallifs are the lowest in SADC region.
    ELECTIONS IN ZAMBIA NOW ARE NOT WON BASED ON SUCH MATTERS BECAUSE EVEN IF PF GOVNT REDUCE POWER BY 75% STILL MAJORITY VOTERS IN 3.5 PROVINCES WILL VOTE FOR HH’S UPND!!SO ELECTIONS ARE WON ON TRIBAL LINES NOW!!

    0

    0
    • Lungu won by a disputed 16, 000 votes by some or by the discredited ECZ by 100,000 votes. That is less than 3 townships in Lusaka, so not sure about your tribal maths or 6.5 provinces majority.

      There is no majority there. Especially after spending 10 billion US and using all GRZ illegally with all the violence and intimidation you could muster and all you can tally is a disputed 100,000 votes ,

      Pathetic.

      0

      0
  26. Dununa reverse!
    So you poor zambian, you thought those Police Force Tutenge, t-shirts and chibuku you received were for Mahala?
    wait and Kaula. time for pay back has just started.

    0

    0
  27. Kuluunda vintu sitilesa,manje kalundidwe!!We know this increment has been triggered by the pressure to pay back the power they ‘borrowed’ from another country during the worst loading-shedding period last year in the history of our country. But surely couldn’t they have increased by between 20% and 40%?

    0

    0
  28. Mai weee! Bantu will start sh*tting watery stool, mealie meal will definitely go up.

    0

    0
  29. This was anticipated and our govt is looking for more money in their pockets. Poor people in troulble. The professor has a high income and this is nothing to him. Greedy forks

    0

    0
  30. @Zambian citizen, you seem to be in denial. You will sober up soon.
    The increment is too huge at one step, it will shake up the economic fundamentals and we will all feel it.
    Together, let us simply accept that we are going to have to live with it.
    You are welcome

    0

    0
  31. The biggest problem at ZESCO is management. There are too many people who do nothing in those offices. shade off the fat at ZESCO and carders should stop taking their defendants to be employed there. Govt to pay their bills, then things will get back to normal. on the other hand, this move is against PF’s pro poor policy. Also think of the effect of this move on the environment (Charcoal demand will swing upwards)

    0

    0
  32. The proverbial light at the end of the tunnel we shall wait and see. I hope something comes out of this political decision ERB is nothing but a govt friendly organization. Professor whatever OK.

    0

    0
  33. The poor will become poorer, we shall soon hear of increased cost of living as most things will be raised. Knowing that production cost of things will increase so is the prices of goods. ZESCO is only interested in cleaning the mercy from within at the expense of the poor Zambians who will be made to do away will the little money they earn to survive.
    our major economy contributors, the mines who use a higher percentage of power for them to operate will off course cry foul as the cost of production will be indirectly increased, meaning even the productivity will be badly affected. The poor Zambian employees will lose jobs and those who indirectly benefit from the mines such as suppliers will also suffer as the mines will think of remedial actions to reduce on the already high production…

    0

    0
  34. The increase of 75% should not have been allowed. It definitely has an adverse ripple effect on the economy. Very soon every body will feel the impact. Adjustment of 10-20% wound have been reasonable. It is sad that ERB also decided to reduce the life line band of 300 kwh proposed BY ZESCO to 200 kwh.

    0

    0
  35. The Hon Minister on the Sunday interview stated that the tariff hike is happening and its non-negotiable. Apparently a consultant has been brought in to do an actual costing of the power, so the 75% is purely a guide. Therefore it could go up/down depending on that report. So brace yourselves, and find alternatives ie solar, gas, waste. As the saying goes ‘boma temunobe’…..

    0

    0
  36. Umuntu ni ze Lungu,uzonda azonde nivanu ivo!!!!!! Propa plannin. Y vonse muzimuoonelamo monga imwe u cn do betta? Infact evrythin sapozed to b increased by 75% dats hw we cn develop our belovd Zambia. Only thoz wu’re stagnant mind bein wil alwys complanants nd condenmers…. God bless our President Edgar Chagwa Lungu. Chikubabe iwe opposed cadree…..!!!!!!!

    0

    0
  37. This is true. The professor said this with his eyes in front of a microphone.

    0

    0
  38. THE INCREASE IS NOT JUSTIFIABLE ,TO ARRIVE AT THAT PERCENTAGE WHAT DID E.R.B TOOK INTO CONSIDERATIONS,I ENVY THE AMERICANS & SOUTH AFRICANS FOR THEIR APPROACH TO ISSUES ,THEY DON’T JUST AGREE BECAUSE SOMEONE JUST MADE A PRONOUCEMENT ( A SENIOR PERSON) E.R.B SHOULD LEARN TO STAND THEIR GROUND.

    0

    0
  39. Ba opposition mahala mulije. Vose ivo mukuyooya vinjelu mulinje. Chipani chinu kulije uko chuluta

    0

    0

Comments are closed.