ZESCO has refuted reports that it will effect a 200 percent electricity tariff hike starting October 1st, 2019 to facilitate the planned importation of power from Eskom of South Africa.

The story was first reported by the Zambia National Broadcasting Corporation (ZNBC) that the period for the increase will only be for six months of the power importation aimed at mitigating load shedding following a decline in power generation necessitated by low water levels.

After the story was picked up by many social media outlets, ZESCO decided to issues the statement below. ZNBC has since taken down the story.

In a statement, ZESCO Director of Commercial and Customer Service Mr. Chiti Mataka said ZESCO regrets the apprehension and anxiety that this misinformation may have caused to customers and the general public.

“Zesco Limited would like to clarify media reports circulating on social media insinuating that the Corporation will institute hike of 200% effective 1st October 2019,” Mr Mataka said.

“The briefing that was held on Tuesday 24th September 2019 was aimed at informing the nation on the status of the power deficit that the country is experiencing and the intervention that the Corporation has put in place to mitigate the same.”

“Key amongst these interventions to mitigate the power deficit, is the planned importation of 300 MW of power from ESKOM of South Africa at a landed cost of approximately $22million per month.”

He said the modalities of how this intervention will be implemented is being worked out between ZESCO and the Government.

“As explained during the same media briefing of Tuesday 24th September 2019, the power importation program is separate from the general tariff adjustment application which is undertaken through the regulatory body, the Energy Regulation Board (ERB). It is the sole preserve of the ERB to consider any electricity pricing adjustments for regulated entities, that include ZESCO.”

“With the reference to the power importation program, ZESCO wishes to advise that in order to support it with sufficient liquidity, it has applied to ERB that an appropriate cost-sharing mechanism be put in place.”

He said the mechanism will run over the duration of the importation program only.

“ZESCO therefore regrets the apprehension and anxiety that this misinformation may have caused to our esteemed customers and the general public.”

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22 COMMENTS

  1. This (ZESCO’s) is not a refutation. It is a confirmation of what has to happen – higher tariffs for the period of importation of electricity if at all it will happen. The only question is how can Eskom sell any electricity when it does not have any to use locally? No new power stations have started generating power and all are behind schedule. There is load shedding here so why would any sane company sell any?

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  2. This story came from the government mouthpiece which is ZNBC so it had an element of truth in it. Zesco just got frightened from the backlash it received on social media once the story broke and therefore decided to retract it but tariffs are definitely going up. It’s just a question of how much.

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  3. Much better elders but that applications to ERB must be published and methodologies in Cost Pass through published for Zambians to buy in and support you It was clearly offline It will not be a bad idea also to explore other energy independence and security measures because like someone there has said our Eskom is facing similar supply challenges and could be more pronounced in the forecast period and naturally the power will be at less peak and at a premium Achieving energy independence is a plus towards Zambians trade and favorable debt surpluses You can add 150 Mw like Shezhen , 800 Mw like Jianjin and 1.1 b Mw by Beijing simply adding rooftops and storage , working with…

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  4. working with owners of buildings and councils creating that shortfall With forecast in climate and
    nature of our technologies on those rivers that should be a long term solutions as you transition You can invest and save to complement in the short to longterm in micro and minigrids for those rurals and promote VER and help balance the GRID etc

    Increase the tariff marginally and hedge to recoup over the time frame You can gain access to climate funds or green supported funds that are available

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  5. Ya ya ya …….just hit them hard.

    They must learn there is nothing for free like beliving

    ” more manee in you pockets in 90 days ”

    Eka libe ku kosa bolla……..you wait and see.

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  6. How much can zesco save by suspending the free electricity units they give to their employees during the 6 months we will be subjected to a ridiculous tariff hike? And a 200% increase will only result in a reduction of the hours of loadshedding from 8 to 6? Are you normal?

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  7. ZESCO is the only Austerity we know! Ndipo batichita nazo!
    Bambi stay mumulu. Ba Climate Change tabatina!
    Fili uko tuleya!

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  8. #8 chichi, the true figure remains 200%. The Zesco statement does not refute the figure of 200%, it says an application has been made to ERB, most probably for the 200%. The issue here seems to be that the original press briefing completely ignored the regulator when the Zesco directors should have pretended that ERB has power to regulate Zesco, it doesn’t.
    So the real correction is seen in the statement “…. the general tariff adjustment application which is undertaken through the regulatory body, the Energy Regulation Board (ERB). It is the sole preserve of the ERB to consider any electricity pricing adjustments for regulated entities, that include ZESCO.”

    “…..ZESCO wishes to advise that in order to support it with sufficient liquidity, it has applied to ERB that an…

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  9. “…..ZESCO wishes to advise that in order to support it with sufficient liquidity, it has applied to ERB that an appropriate cost-sharing mechanism be put in place.”
    200% it shall be, okay puppet ERB?

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  10. Problem with govt managed entities is that they can not think of ways and means of reducing costs. The only thing that jumps to their mind is to increase tariffs. How many cadres do u have on your payroll that are drawing salaries for nothing? All that cost is coming to us. Zesco employees lead very luxurious life styles and yet work-wise over 90% of them do not measure up to standard. Cut down on your high salaries and other personal emoluments, reduce on workforce, reduce on travel. Has the country where we are exporting power to also increased their tariffs? Tariffs and fuel going up almost at the same time! It is a deadly combination on the people. It is like being attacked by a lion and a buffalo at the same time.

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  11. “Modalities are still being worked on” is still not a refutation of the claims.And i smell a rat when i know South Africa itself has massive power shortages too.

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  12. This Zesco massive tariff hike stinks of fraud and i even smell dead a rat when i know South Africa itself has massive power shortages too.

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  13. ZNBC radio quoted 200% from the press briefing, so where did they get the figure from if it was not mentioned in the press briefing?

    The honourable minister has been talking about 75% increase and suddenly his subordinates come up with 200% . Maybe when they did not see a violent objection to the 75% they figured it was okay to do a massive figure as people were docile?
    Rest assured the true reaction will come in August 2021 when we shall reveal our true reaction.

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  14. They must re look at the whole tariff scenarios and their projections They will need to do more technical analysis on it and see the fundamentals playing the Zambian economy and incorporate it can not be a at once They will need to reinstate Fixed tariffs removal is only workable in environments where a utility has not committed installations and power to customer or VER But then what happens to Green Bonds,Climate resilient Global supported Bonds and Funds to help manage this climate risk on your revenues and supply.Governments around the Globe are tapping into the USD 670M green Bonds at cost reflective,sustainable to help them manage transitions and upscale other renewable…

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  15. generation methods There is the Germany Kfw Bank well capitalized to make climate funds available and manage the transitions without creating volatile in those sudden not multi year worked out tariff options There are more available options to manage these transitions much better than the tariff path in partnership with Zesco clients and partners also well

    The disputed increment and any above 55% will have similar modeled economic impact If they need sustainability and security of supply they should prioritize investments in renewable s and smart grids as part of the solid Grid for short to long-term strategies Its wrong but can be modeled

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  16. This is rediculous there is no refutation just a confirmation
    I see what they meant by ababambi balimuchibe bola naikosa they meant us the people this just the tip of the ice burg
    We are yet to see more problems

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