The Energy and Regulation Board says the migration towards cost reflective tariffs in the energy sector is inevitable for ZESCO and the economy.
ERB Board Chairperson Raymond Mpundu who officially opened the ERB public hearing on the ZESCO application to vary electricity tariffs in Lusaka today, said the board targets to decide on ZESCO’s application within this month.
Mr. Mpundu said ZESCO in December last year applied to ERB to increase electricity tariffs by 113% for residential, large and small power, commercial and service customers and to revise the connection charges by an average of 213% this year.
He said the board has convened the hearing because it is a legal requirement and also presents an opportunity to enhance transparency in the tariff determination process.
And ZESCO Director of Transmission Webster Musonda said the proposed adjustment is expected to generate over K16 billion Kwacha revenue in the first full year of its implementation.
Mr. Musonda said this will enable the company meet its current obligations and implement its capital investment portfolio.
He said the decision to revise the electricity tariffs is owing to the prevailing Economic Conditions, Changes in the Cost of Generating, Transmitting, Distributing and Supplying Electricity among others.
And in an interview with ZNBC, an energy expert Andrew Kamanga said the revision of electricity tariffs will attract investment in the electricity sector and also ensure that there is reliable supply.
Mr. Kamanga who is also North Western Energy Corporation Managing Director urged Government to open the electricity sector and enable various power companies to find their own customers.