ZESCO Managing Director Officer Victor Mundende has justified the 91% average retail electricity tariff hike proposal.
ZESCO has formally written to the Energy Regulation Board – ERB suggesting an upward adjustment to retail tariffs aimed at funding capital expenditure.
Mr. Mundende said during a presentation in Lusaka that ZESCO had proposed to increase retail tariffs to K1.87/kWh from 93 ngwee/kWh for residential customers.
ZESCO also proposed to do away with the monthly fixed charge and incorporate them into the increased tariffs.
Mr. Mundende confirmed that ZESCOs operational costs have swelled to K13 billion in 2018 from K3 billion in 2011.
He said raising an estimated K16 billion in the first year of implementation of new tariffs will help improve company operations.