
President Edgar Lungu called for the 20th Cabinet Meeting on Monday, 4th November, 2019 to mainly discuss policy matters aimed at addressing the electricity challenges the country is currently going through and ensure the continued development of the country. The following were the decisions made by Cabinet:
1. National Energy Policy, 2019.
Cabinet, approved the Revised National Energy Policy, 2019 in order to guide the development and management of the energy sector. The Revised National Energy Policy 2019 builds on previous Policies of 1994 and 2008 and is anchored on the Seventh National Development Plan and Vision 2030.
The Government decided to revise the 2008 Policy with a view to comprehensively address the challenges currently being experienced in the energy sector. The Revised Policy aims at facilitating open access regimes, cost reflective tariff in the pricing of energy services in order to promote investment, encourage the multiplicity of players in the energy market and promote alternative sources of energy such as geo-thermal, solar, wind and other technologies such as nuclear energy.
2. The Energy Regulation Bill 2019
Cabinet also approved for publication and introduction in Parliament, “The Energy Regulation Bill, 2019,” during the current sitting.
The objects of this Bill are to, continue the existence of the Energy Regulation Board and provide for the licensing of enterprises in the energy sector and repeal and replace the Energy Regulation Act, 1995.
Cabinet is of the view that the Energy Regulation Act, Cap. 436, is inadequate in dealing with various issues related to the licensing of enterprises in the energy sector during this period, hence the need to introduce a new legislation. The new legislation is in line with the approved Revised Energy Policy 2019 in addressing the energy problems the country is currently going through.
3. The Electricity Bill, 2019.
During the same Meeting, Cabinet approved the publication and introduction in Parliament of “The Electricity Bill, 2019.” The objects of this Bill include among others, to regulate the generation, transmission, distribution and supply of electricity so as to enhance the security and reliability of the supply of electricity; provide for the sale and purchase of electricity within and outside Zambia through power purchase and power supply agreements; provide the roles and responsibilities of various players in the electricity sector including providing for a Multi-year Tariff Framework.
Cabinet expressed the need to urgently address the current electricity challenges the country is going through due to the effects of climate change that have led to reduced water levels for electricity generation, thereby leading to reduced economic activity with increased electricity rationing through load shedding. Cabinet emphasised that with serious implementation of the 2019 National Energy Policy, the Energy Regulation Act and the Electricity Act, the situation with regard to electricity generation and supply to industries and Zambians in general, should change in the shortest possible time.
4. National Off-Grid Solar Mini-Grid Project.
Cabinet also approved the implementation of the National Off-Grid Solar Mini-Grid Project as an alternative to the reduced hdro-power generation due to lower water levels.
The National Off-Grid Solar Mini-Grid Project will facilitate increased access to electricity by the rural population in Zambia; contribute to improved productivity and quality of life and contribute to improved social service delivery. Cabinet is already looking at implementation of alternative sources of electricity generation as an immediate answer to the electricity shortages the country is faced with as a result of climate change.
5. The National Strategy on Financial Education II, 2019-2024.
In winding up debate for the day, Cabinet also approved the National Strategy on Financial Education (NSFE) II, 2019-2024 in order to strengthen financial education in Zambia and develop a competitive and resilient inclusive financial sector in line with the National Financial Sector Development Policy (NFSDP) and National Financial Inclusion Strategy (NFIS) 2017.
The development of the National Strategy on Financial Education II, which builds on the first Strategy, is essential with the primary goal of having a financially educated Zambian population by 2030.
The Strategy aims at improving knowledge, understanding, skills, motivation and confidence to help the Zambians secure positive financial outcomes for themselves and their families which will contribute to reduced poverty levels and stimulate economic growth. The Strategy will also contribute to the development of a stable, resilient and inclusive financial sector that contributes to economic growth and broad-based wealth creation.