By SYLVESTER MWALE
THE Energy Regulation Board (ERB) has sanctioned the upward adjustment of Zesco electricity tariffs for various customer categories from an average of 37 Ngwee to K1.13 per kilowatt hour.
The decision is in response to the low investment in the country’s power generation sector and the tariff adjustment is expected to generate US$3.7 billion investment in generation projects thereby adding capacity of 1,500 megawatts to the national grid.
The new tariffs were effected last night and would see electricity cost for residential, services, commercial and maximum demand customers, increasing by various margins, according to the cost of supply for each specific customer category.
The ERB has also directed Zesco to with immediate effect reduce subsidised electricity units allocated to its staff from the current 2,000 kilowatt-hours to 300 kilowatt-hours per month.
This was according to a statement released in Lusaka yesterday by the Board.
The tariff structure for residential customers had been altered to include a life-line consumption band (R1) of up to 300 kilowatt-hours per month. For this consumption band, the tariff will remain at 15 Ngwee per kilowatt-hour.
Additionally, the Board said the fixed monthly charge for residential customers remained unchanged at K18.23.
The Board has ordered Zesco to immediately start implementing demand side management measures. This include, among other things, power factor surcharge as well as migration of all customer meters to Time of Use (ToU) and implement the use of energy saving bulbs.
The power utility firm was also directed to start a programme of tariff differentiation for the poor starting with the rural consumers.
“Zesco is also directed to devise sustainable strategies and systems that are aimed at improving service delivery and enhancing operational efficiency, including reducing its staff costs as a proportion of total operating and maintenance costs.
“Along this line, Zesco is directed to strictly adhere to the performance benchmarks which have been agreed upon by the Energy Regulation Board,” stated the Board.
ERB had established an Electricity Strategic Fund (ESF) which was meant to generate sustainable funding for the electricity sub-sector.
The ESF, would among other things, provide for infrastructure development and also facilitate emergency power imports.
In this regard, Zesco was hereby directed, to immediately start remitting one percent of the additional revenue to be realised from this tariff adjustment into the fund.
The Board stated that the proposed tariffs and allied directives were effective last night.