Energy Regulatory Board rejects ZESCO’s tariff adjustment proposal

The Energy Regulatory Board (ERB) has rejected ZESCO’s request to adjust electricity tariffs, citing the potential negative impacts of the proposed changes.

In a statement issued in Lusaka, ERB Chairperson, James Banda, explained that ZESCO had sought an emergency tariff adjustment after the board declared a state of emergency.

This declaration was a response to ZESCO’s inability to meet the nation’s electricity demand.

Banda outlined the specifics of ZESCO’s proposal, which included restructuring the residential tariff system by increasing costs for consumption above 200 units.

The proposal also suggested changes for commercial customers, including a reduction in tariffs for those consuming less than 100 units and an increase for those consuming more than 500 units.

Additionally, ZESCO proposed raising tariffs for 30 percent of the monthly electricity consumed by maximum demand customers.

“The emergency tariff aimed to generate US$14 million each month from retail customers,” Banda said.

“This revenue was intended to fund the procurement of 300 megawatts of power to compensate for the energy shortfall during Maamba Energy’s scheduled maintenance.”

However, after careful evaluation of the proposal’s potential advantages and disadvantages, the ERB decided to reject ZESCO’s application.

Banda emphasized that the board was particularly concerned about the unintended consequences that could arise from implementing the emergency tariffs.

“The ERB has resolved to reject ZESCO’s application for emergency tariffs due to the unintended consequences it would create,” Banda concluded.

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