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Alba Iulia
Monday, June 27, 2022

There will be no increments in electricity tariffs till study completes, Energy Minister

Economy There will be no increments in electricity tariffs till study completes, Energy...

The Ministry of Energy has assured that there will be no increments in electricity tariffs and connection fees until the electricity cost of service study which is currently undergoing peer review is ready in two months’ time.

Minister responsible Peter Kapala however says that this position does not stop the Energy Regulations Board from proceeding to look at Zesco’s latest application to revise connection fees for Standard Connections related to three customer categories as is required under the laws governing the sector.

Mr. Kapala said that after Zesco’s failed attempt to hike tariffs earlier this year, the company has made the latest application and ERB has since asked for comments as advertised but has emphasised that it is his government’s policy and plan that there will be no increment in tariffs and connection fees until the Cost of Service Study report is out.

In its latest application, Zesco indicated that it has had challenges to promptly connect new applications for electricity resulting in a backlog in new connections of 67,000 as at 31st December 2021.

This was attributed to lack of cost reflective fees for connections, which, according to Zesco are up to 10 times below the actual cost of connection in some cases. The proposed increase in power connection fees is over 300 percent in some cases.

20 COMMENTS

  1. It is not just a matter of increasing tariffs bwana, it is also about how the tariff increase will affect the cost of doing business in Zambia and subsequently how it will affect the cost of living particularly for ordinary Zambians.

  2. “Zesco indicated that it has had challenges to promptly connect new applications for electricity resulting in a backlog in new connections of 67,000 as at 31st December 2021.”

    Zesco is an inefficient state company that needs to unbundled..its solution to everything is price hikes and this will never change.
    Already that self proclaimed Zambian Energy expert Johnston Chikwanda has already started justifying another price hike so he can be called in for consulation so he gets paid.

  3. Ten months in power and what do we get: TOTAL INDECISIVENESS. And with the Lake Kariba levels more than 20% lower than last year, loadshedding is around the corner. GET SOLAR and be independent from Zesco and the grid!

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  4. Johnston Chikwanda is the most corrupt and incompetent consultant and should be left OUT OF THE DECISION.

  5. Just what is he saying please help understand this New Dawn government….they’re not increasing but he goes on to say yes they’re increasing…I need 3 phase underground connection next week on my property

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  6. Hahahah in other words we are increasing tarrifs once the study is complete. Promises and lies should be upnd new slogan

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  7. Kaiser Zulu continues to masquerade on this forum as on high moral ground when frequently being dragged to courts of law for civil and criminal offences. So we remind you to pay $13,000 you owe Mr Stephen Mulembeta Samuteba. You promised to pay this money within 30 days from 24th March 2022. Ha ha ha ha ah! pay the debt, may end up blogging from jail

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  8. Too many stories that it’s becoming impossible to know what to believe or expect. The confidence that you people exuded when asking for people to vote has somehow evaporated. Why?

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  9. Lusaka Times what happened to your website…you’ve lost traffic because of your silly censorship

  10. All this means is zesco will just delay new connections for a further two months until connection fees are increased.

  11. “A great talkative is a great liar”…who said these words and what was the occasion…10marks

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  12. ATLEAST A STUDY IS BEING DONE WITH STAKE HOLDERS INVOLVED
    SOMETHING THE PF NEVER CONSIDERED
    OBVIUOSLY IT WILL GO UP EVENTUALLY
    ZESCO CANNOT BE A BURDEN TO GOVERNMENT ALL ITS LIFE
    WHATS IT NOW 57 YEARS ??

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  13. IMF, World Bank and America’s puppets…They can’t think, do not believe in themselves…This is the most useless government..

  14. This is the problem with our ministers, their inability to tell the truth and stop waffling.
    We all know that an increase in both fuel and electricity was anticipated for the third quarter of 2022, becoming effective around June, 2022.True to this view, ERB has indeed advertised Zesco’s intention to increase electricity tariffs.
    Why can’t you respect people, bwana minister, and just tell it like it is, instead of talking about a study.
    What are the terms of the study and who are the sponsors?
    How do you allow ERB to advertise the proposed increase by Zesco if indeed you don’t already know the outcome of the so called study?
    This is why it’s becoming so difficult to understand what the upnd govt is communicating.
    Just be honest with issues and tell voters what you intend to do…

  15. Just like policy rates inflation and interest rates.electricity rates and fuel pricing should be also be seen as such For the study to have positive impact on the growth of the economy it must see the real options on various economic sectors and do a duration impact assessment on the effect of that not on both sides The principle should be about sustainability and growth of the sectors and so Zesco in the long-term what is long-term is a matter of long-term marginal cost analysis and stratergy it will be good to read the report and see it’s structure and balance of decisions Yes there is no decision until it’s determined and assessed to be correct application and increase both for the ultility and the local economies That is energy EQUITY in tariff decisions and methodology

  16. It should be a 2 study the rate increase and the impact may also be benchmark to the best LCOE for various energy systems and technologies being better than other of costly methods of generating and transmission of power though differently structured and positioned better

  17. On both sides sorry cost reflectivity and the impact on economies seeing other options in bring the cost of energy to best marginal prices Even lead in energy efficiency and pricing growing the businesses and segments of the ultility and employment numbers for the skills in the energy sector lacking and contacted

  18. Maybe also some revisions and act on rates and pricing should come to make it clearly methodology application and reviews for future management so that modelling is pridictable and welcome by all stakeholders in line with cost curves and developments annually

  19. The real options for the ultility are good if only they can see and stratergies long-term There are mines coming up and frontier they will need transmission and capacity additions When you look of the new Investments it should take the installed generation capacity at kafue lower and escrow those to help restructure the financing and grow the business segments It’s an opportunity also for exports to meet the winter outlook in power in SA for excess reserve margins that could also be productively used for households incomes So increasing people tariffs could be marginal in line with inflation but in the long-term the cost should be lower spread over capacity and business opportunities in new frontiers and customers because the tariff price is elastic at some point and revenues will fall…

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