Zambia’s power utility company, ZESCO, has moved to clarify recent speculation regarding the adjustment of electricity tariffs, asserting that no decision has been made thus far. In a statement released to the public, ZESCO explained that any tariff adjustments are contingent upon the determination of the 2024 tariff by the Energy Regulation Board (ERB), expected to be finalized by May 2024.
While ZESCO was granted a Multi-Year tariff adjustment spanning from 2023 to 2027, the tariffs for the period of 2024 to 2027 were conditionally pre-approved by the ERB. This conditional approval hinges on the ERB’s annual True-Up review, which evaluates ZESCO’s performance against agreed-upon performance indicators and the effectiveness of the 2023 tariffs.
Key performance indicators assessed during the True-Up review encompass various aspects, including energy sales projections, revenue sales, cost of sales, operational and maintenance expenses, and capital expenditure.
ZESCO outlined three potential scenarios resulting from the ERB’s True-Up review. Firstly, maintaining the pre-approved tariffs could occur if ZESCO demonstrates optimal performance across all performance indicators. Alternatively, an increase in pre-approved tariffs might be necessary to offset uncontrollable costs incurred by the utility during the review period. Conversely, a reduction in pre-approved tariffs could be implemented if unplanned revenue gains are observed.
The statement reiterated that tariff adjustments by ZESCO are independently determined by the ERB in accordance with the Multi-Year Tariff Framework. This framework ensures a transparent and systematic approach to tariff adjustments, governed by regulatory oversight.
As stakeholders await the ERB’s decision, ZESCO emphasized its commitment to providing reliable and affordable electricity services to consumers across Zambia. The clarification aims to dispel any uncertainty surrounding tariff adjustments and reaffirm the adherence to regulatory processes in the determination of electricity tariffs.
ZESCO encouraged customers and stakeholders to remain vigilant for updates on the tariff determination process, underscoring the importance of transparency and regulatory compliance in maintaining trust and confidence in the electricity sector.
The utility company’s proactive communication serves to foster transparency and accountability, ensuring that stakeholders are informed and engaged throughout the regulatory process.
Kikikikiki Social Media is putting liars and deceivers on the spotlight…..nowhere to hide….and whatever statement you issuing it shall be saved for future reference…lies have short legs
The top 4 worst institutions in Zambia are:
1. ACC, (I h@te these idyots)
2. Z.police
3. ZESCO (kariba Kariba m****** mwe)
4. ZRA,
These are evil institutions, they may even h@te their own parents. Once these institutions realize that they should work for that poorest grandma, then Zambia will develop.
Why load shed electricity for example, you can’t be stocking electricity like maize at FRA. LET ELECTRICITY FLOW DAY AND NIGHT, Zambia has no factories to consume high energy.
Whether a decision has or has not been made by ZESCO, the fact is electricity tariffs are unjustifiably low in Zambia when compared to other countries in SADC.
For example Mozambique uses the same water resources as Zambia to generate electricity The Kafue river and Zambezi River both end up at the Cabora Bassa dam. Mozambique has an average electricity tariff of 10 cents/Kwh but Zambias tariff is only around 5 cents/Kwh .
With the El nino drought , we will import power from neighbouring Mozambique at 10 cents/Kwh and supply it locally at half price. No wonder ZESCO is loss making.
Also cahora bass receives more water. Kafue, Luangwa, Shire don’t feed Kariba but are tributaries of Zambezi past Kariba
Its not true that Mozambique uses the same water resources as Zambia to generate electricity. They only happen to have a hydro station on the same river as Zambia. Cahora Bassa station has a higher capacity than Kariba which is shared with Zimbabwe. Mozambique also exploits natural gas and solar power. They have the Cuamba Solar station and renewable energy sources. Thats why they are potentially the biggest energy resource in SADC. Mozambique also heavily subsidises residential consumers just like Zambia.
Also cahora bass receives more water. Kafue, Luangwa, Shire don’t feed Kariba but are tributaries of Zambezi past Kariba
@ From Lazy Lungu to Half-baked HH and @Feiran
You say Mozambique heavily subsidizes residential consumers but the electricity tariff is still double that in Zambia.
Just because Mozambique receives other water resources , has a high capacity dam and harnesses renewable energy resources does not justify Mozambique having a tariff of 10 cents/kwh and Zambia having very low tariffs.
Makes no sense at all
In opposition HH and UPND were superb…they had solutions for everything but it turns out they’re just empty tins….now they’re making Lungu look like a genius
What happens is that when an idea is discussed by a company, some employee will tell his/her friend about it. That’s how this rumor started. It wasn’t just dreamed of.
The ERB doesn’t address the tariffs under the Bulk Supply Agreement which takes up about 60% of power available to Zesco. In short, domestic and other consumers usually subsidize power to the mines, apart from the tax incentives they get. At the height of the last power deficit, Zesco declared huge losses because the bulky of the power they imported at higher tariffs was supplied to the mines cheaply. Ironically, CEC which buys this power declared a US$20M dividend the same year! Mbita Chitala has written on this. When the previous BSA lapsed we expected this government to address this injustice as there were no legal impediments but alas, they proceeded under the same unfair terms. Again Zambians will bleed money so that crooks can become more wealthy