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ZESCO Limited has announced that its emergency tariff adjustment will take effect on Friday, November 1, 2024.
Company Spokesperson, Matongo Maumbi, stated the adjustment followed approval by the Energy Regulation Board (ERB) on October 10, 2024.
Maumbi, in a statement issued on Thursday, noted that ZESCO currently imports an average of 440 Megawatts (MW), requiring around US$15 million monthly to partially cover the purchase cost of 788MW, totaling approximately $94 million.
“ZESCO’s application for a tariff adjustment was necessary to raise funds to secure additional power imports and address the immediate power supply gap due to the drought-induced hydropower generation deficit,” Maumbi explained.
The imports are primarily sourced from Eskom (South Africa), EDM (Mozambique), and the Southern African Power Pool market.
With the additional funds, ZESCO aims to increase power availability.
The tariff adjustment, effective only during the emergency period, includes a reduction of up to 20 percent for 537,496 residential customers.
ZESCO claims this measure is designed to maintain lifeline tariffs and support low-income households, with tariff bands R1 and R2 reduced by 20 percent and 5 percent, respectively.
“The reduction and maintenance of the lifeline tariff will help this segment of residential customers maintain affordable electricity access,” Maumbi said.
Small businesses in the first commercial tariff band (C1), including barbershops, salons, welders, and market vendors—14,172 businesses in total—will see a 15 percent tariff reduction to mitigate operational costs during the crisis period.
The adjustment, ZESCO said, would not affect government hospitals, clinics, schools, old age homes, orphanages, street lighting, traffic lights and water pumping stations to ensure continuity of essential services.
Maumbi stated that the emergency tariff adjustment was subject to periodic review by the ERB.
“The 2023/2024 drought season was declared a National Disaster and Emergency on February 29, 2024, as provided under the Disaster Management Act No. 13 of 2010, with ERB notice No. 233 of 2024 issued on April 12, 2024,” Maumbi said.
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