Stakeholders Support ZESCO’s Proposal For Emergency Electricity Tariff Adjustment

Stakeholders from various sectors have backed ZESCO’s proposal for Emergency Electricity tariff adjustment to cushion small and medium enterprises (SMEs) from the high cost of doing business.

Making submissions during the second Public Hearing held in Lusaka today, GreenCo Founder and Chief Executive Officer, Ana Hadjuka says the firm fully supports ZESCO’s proposal in order for the Corporation to be financially viable.

Ms. Hadjuka has the need not to reduce the life-line tariff further, as the current Kwacha depreciation has negatively affected the utility’s operations.

Speaking at the same event, Association of Power Companies states that it does not see any reason why there should be a reduction in electricity tariffs because cost reflective tariffs are essential for future funding, therefore the Corporation should reconsider the issue of reducing the charges.

And Business Coalition Task Force Representative Mark O’donnell, states that ZESCO’s proposed tariff adjustment is realistic because businesses that depend on diesel generators spend 13 kilowatt-hour which is expensive to keep operations running.

Mr. O’donnell has also urged ZESCO to ensure prudent utilization of the income that will come from the tariff adjustment once approved by ERB.

Meanwhile, Zambia Association of Manufactures (ZAM) President Ashu Sagar notes that while ZESCO proposes up to 7 hours of guaranteed power supply per day, this is insufficient for sustaining continuous manufacturing operations.

Mr. Sagar has implored the firm to provide a firmer guarantee on power supply duration and work towards reducing the load shedding period.

In its application, ZESCO seeks to raise revenue amounting to US$15 million monthly for importation of additional 300 megawatts of power.