Q FM Africa's Modern Radio
Cabinet has approved the review of bulk supply agreements signed between Zesco Limited and bulk customers to allow for constant adjustments of electricity tariffs similar to how residential and other customers are adjusted.
This follows its 16th Special Meeting of Cabinet held on Thursday the 13th of August this week.
In statement made available to Qfm News Acting Chief government spokesperson Vincent Mwale says the measure is intended to ensure that mining companies remain viable with the view to boosting economic growth in the country.
Mr. Mwale who is also Youth and Sport Minister has explained that approved review may have to be achieved by enacting appropriate legislation.
Vincent Mwale
He states that given the fact that copper prices were relatively low on the global market at US$2,000 per tone compared to the current prices of US$5,000 per ton, government is not in the position to continue offering incentives.
Mr Mwale states that this is especially that currently investments in power generation projects are not moving because investors cannot get a good return on their investments.
He has disclosed that to this effect Cabinet has directed Zesco to immediately migrate to cost-eflective electricity tariffs as a way of speeding up power project development.