ERB Approves ZESCO’s Application for Emergency Tariff Adjustment

Energy Regulation Board (ERB) has approved ZESCO’s application for emergency electricity tariff adjustment for a period of three months, effective 1st November, 2024, to 31st January, 2025.

In its application, ZESCO aims to raise US$15 million monthly from retail customers to contribute towards the importation of 788 Megawatts of power to mitigate the current load shedding.

Speaking at a media briefing, Board Chairperson James Banda said ERB’s decision is based on assurances by ZESCO of a proposed reduction in the tariffs for residential R1, R2 and Commercial C1 Customers, which will provide relief for low-income households as well as Small and Medium Enterprises (SMEs), and ensure that the tariffs are affordable to this category of consumers.

Mr. Banda added that in its application, ZESCO also committed to reducing load shedding hours and publishing predictable load management schedules.

“The review of the application also took into consideration ZESCO’s financial performance and viability, and projected incremental revenue from the emergency tariff.”

“Further, the review considered the impact of load shedding and affordability of the tariffs by the consumers, as well as Government’s desire for security of supply,” Mr. Banda noted.

He however directed the power utility company to prioritize power purchases provided it is cost reflective when compared with Southern Africa Power Pool (SAPP) and other sources.

“The ERB has also directed ZESCO to adhere to load management schedule and ensure a maximum of 17 hours of loadshedding.”

“In the event that the utility experiences challenges in adhering to the load shedding schedules, the ERB and the public must be notified immediately using real time methods,” he added.

He further encouraged ZESCO to explore sourcing extra revenue from other sources and other financially prudent options for power imports.