Lifeline tariff to stay — Zesco
Published On July 2, 2014 » 2729 Views» By Administrator Times » Business, Stories
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ZESCO  logoBy HELEN ZULU
 –

ZESCO has said it will maintain the lifeline tariff which is the first
100 units on the residential tariff category R1 in order to enhance
the concerted efforts of increasing access to electricity.
Company acting managing director Victor Mundende said after further
consideration of the domino effects that the increment would have on
the rising cost of living, Zesco decided that the ‘lifeline’ tariff
would not change.
Mr Mundende said,  this meant that the cost of the first 100
units would remain at 15 Ngwee per kilowatt hour (kWh) and that, the
decision was aimed at enhancing  concerted efforts of increasing
access to electricity.
He said the power utility company was of the view that the 100 units
were sufficient to meet the basic needs of a low consuming domestic
household.

‘‘After further consideration of the domino effects that the increment
would have on the rising cost of living, Zesco has decided that the
‘lifeline’ tariff will not change.
‘‘The residential R2 and R3 tariff categories will increase as
announced by the Energy Regulation Board, generally, the tariff
adjustments will enable Zesco improve its service delivery given the
electricity deficit prevailing in the country,’’ Mr Mundende said.
He said Zesco was conscious of the fact that a significant section of the
Zambian society was faced with numerous challenges in as far as being
able to afford goods and services were concerned.
Mr Mundende said, however, that in implementing this decision, it was
envisaged that the first 100 units would enable low-income households
some relief and make electricity more affordable for the low consuming
customers.
ERB recently announced that it had approved tariff increase
of 16 per cent for Zesco’s domestic customers as opposed to the
proposed weighted average of 26 per cent applied for.

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