Govt justifies ZESCO tariffs hike

Government has justified the proposal by ZESCO to increase electricity tariffs.

Energy Minister David Mabumba has told a media briefing that the power utility company is making loses because its electricity production cost is higher than the revenue being generated from the sale of electricity to its customers.

Mr. Mabumba says with the loses ZESCO is making; he does not think the power utility company is in a position borrow for investment from any bank and be able to pay back the debt. Mabumba David

He says proposal by ZESCO to the Energy Regulation Board (ERB) to adjust electricity tariffs by 75 percent is therefore progressive.

Mr. Mabumba says this is especially that ZESCO is proposing to also increase the domestic tariff from 100 to 300kilowatt per hour at the same fixed charge of 0.15 ngwee.

He says this means that despite the upward adjustment in the electricity tariffs, Zambians at household level will still be

And ZESCO Managing Director, Victor Mundende has noted the need for power utility company to make regular electricity adjustments to it invest in new power generation, transmission and distribution infrastructure.

Mr Mundende says ZESCO also needs to expand its customer base and increase access to electricity in the Country.

Leave a Reply

Your email address will not be published. Required fields are marked *

*