By 
Tough decisions such as applying cost reflective electricity tariffs must be made to attract investment in the energy sector and mitigate the much anticipated worse load shedding in the next five years.
This is according to the Energy Expert Johnson Chikwanda at a press briefing in Lusaka on Tuesday.
Mr Chikwanda said there was need to increase electricity tariffs quite significantly within the next one year to actualise investment, failure to which it is predicted that load shedding will worsen and may reverse the gains which have been made in the economy.
Government has indicated that it would make tariffs cost reflective over a five year period.
Chikwanda however said Zambia could not wait for five years for tariffs to become cost reflective.
Read more: Hike in electricity costs imminent, as external debts near $13.4 billion
“As we desperate for investments, we cannot wait for five years for the tariffs, we cannot wait for five years for the tariffs to become cost reflective,” he said.
Chikwanda emphasised the need to make tough decisions in the energy sector.
He observed that the inability to make and implement tough decisions had been precipitated by hostile public sentiment assault on any Government which attempted to deal with the apex of the tariff on non-cost reflective being a major bottleneck.
Until the issue of the tariff is resolved and acted upon, he said, it would be difficult for the leadership to actualise private sector investment pledges in the energy sector and end load shedding in a sustainable way.
“We need tough decision. If we do not allow tough decisions, we will remain trapped in a vicious cycle of energy poverty,” Chikwanda said.
He stressed that new power projects coming at a relatively higher price could be derailed if the tariff structure was not improved upon significantly over the next 12 months.
“Therefore, we need to take a bitter pill by allowing tariffs which will unlock investment to be implemented without tearing one another,” Chikwanda said.
Comments