Lusaka, December, 30, 2020, ZANIS—The Energy Regulation Board (ERB) has in the last year improved its performance as compared to the year 2019.
ERB Director General Langiwe Lungu has attributed the improved performance to non-adjustment of fuel prices since December 2019 despite the outbreak of COVID-19.
Ms Lungu stated that the board has this year not effected any price change on petroleum products in the country despite the fluctuation of the US dollar.
‘’Fuel prices were maintained despite the turbulent events experienced during the course of 2020, specifically the outbreak of the COVID-19 pandemic and fluctuation of the kwacha to the US dollar,’’ Ms Lungu noted.
Ms Lungu was speaking today during a press briefing at their offices and explained that the board reviews petroleum prices under a 60 days cycles whenever petroleum feedstock is imported into the country.
She further explained that the price change is only effected if the wholesale price is more than 2.5 percent threshold.
She however noted that the movement in the exchange rates had negative impacts on the benefits of a reduction in the pump prices that should have accrued to the county.
In a related development Ms Lungu disclosed that the organization issued 289 licences against 117 in 2019 attributing the increase to private sector participation in the energy sector.
‘’Despite the COVID-19 pandemic, I am pleased to report that ERB issued a record number of licenses at 289, against 117 licenses issued in 2019,’’ She said.
She said the sector experienced an increase in demand for energy products and services but had challenges of supply.
Ms Lungu also highlighted that the board made adjustments on electricity tariffs for domestic customers that are supplied by ZESCO limited, North-western Energy Corporation (NWEC) and Zengamina Power Limited.
She said ZESCO Limited had this year increased tariffs by a weighted average of 113 percent.
“At the beginning of the year, tariffs were increased for ZESCO’s customers by a weighted average of 113 %. However the increase did not affect customers with power purchase agreements and the mines whose tariffs are directly negotiated with ZESCO and approved by the ERB,” she explained.
Meanwhile ERB managed to score above target in revenue collection of more than K2. 9 million for the year 2020 against the target of K1.5million