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Energy expert, Johnstone Chikwanda, says the decision to reduce electricity tariff price by 40 ngwee for medium consumers while placing burden on big consumers is extraordinary.
On Friday last week, the Energy Regulation Board (ERB) approved lower electricity tariffs for low-income households that consume 100 Units or less per month.
The new tariffs will take effect on May 1, 2023.
Households that consume 100 Units or less per month will now pay K0.65 per unit, down from K0.90 per unit.
This means that a household that consumes 100 Units per month will save K25 per month.
Commenting on this development, Chikwanda said this was fair consideration for the low and medium class customers.
Read more: Electricity tariffs must guarantee good returns to attract investors into energy sector — Chikwanda
He stated that the small electricity price increase by 10 ngwee per unit for those who used between 100 units and 300 units was equally welcome in that 10 ngwee was relatively affordable given that there had been no increase for four years.
“The decision which has been made by the ERB to uphold the life line at 100 units for the vulnerable segment of our society, while at the same time reducing the electricity price by 40 ngwee per unit for customers who use between 300 units and 500 units is a welcome and unprecedented development given that the last electricity price increase was 113 percent in 2019,” he said in a statement on Monday.
Chikwanda also welcomed electricity price reductions for commercial customers who used less electricity.
Also read: Economist cautions on planned hike of ZESCO tariffs, notes investment levels declining
He observed that the pattern in the ERB decision placed a more responsibilities on customers who used a lot of electricity than those who consumed less electricity.
Chikwanda encouraged consumers who used a lot of electricity to find means and ways of reducing their dependence on ZESCO.
“The overall increase is aimed at placing the industry on a more attractive drive way in order to accelerate investor pledge actualization and fair return.
“I commend all the stakeholders who participated in the lengthy and cumbersome process of electricity price revision which started three months ago,” he said.
The ERB said the new tariffs would be reviewed after 12 months to assess their impact on the economy.
Johnstone Chikwanda is an energy expert and a Fellow of the Engineering Institute of Zambia, a PhD candidate at Johnson University, Knoxville, Tennessee, USA.
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