ZESCO makes case for tariffs hike

Power utility company ZESCO says it will this year alone purchase power from independent power producers costing US$502 million

Zesco Managing Director Victor Mundende disclosed this in Lusaka during the official opening of the public hearing by the Energy Regulation Board (ERB) on ZESCO’s application to hike electricity tariffs by 75 percent.

Mr. Mundende says the high cost of power from Independent Power Producers needs to be supported by an adjustment in tariffs so that ZESCO can continue to make these purchases.

He has also disclosed that total Operating Costs for ZESCO increased from K2.1 billion in 2011 to K 8.7 billion in 2016.

He says these increase is due to an increase in both cost of sales and other operating costs, adding that the increase in the cost of sales has been driven largely by an increase in the cost of local purchases and importation of power.

Mr Mundende says in order to maintain equipment and other issues that have come due to the high foreign exchange rate, ZESCO needs to increase tariffs in order to continue serving its clients efficiently.

And in his welcoming remarks, ERB Board Chairperson Professor Francis Yamba says to date, the ERB has received a total of 36 responses from stakeholders, including representatives of industry, churches, civil society organizations, traditional authorities and rural communities among others on the proposal by ZESCO to increase electricity tariffs.