Q FM Africa's Modern Radio
The Policy Monitoring and Research Center (PMRC) says the removal of electricity subsidies on small and medium sized enterprises and poor households is highly regressive.
A PMRC report on the removal of subsidies has indicated that the move has the potential to destabilize Small and Medium Enterprises and poor households whose businesses largely depend on electricity.
Kasweka Maboshe, a researcher at PMRC has stated that the removal of electricity subsidies has adverse income effects on SMEs.
And PMRC board Chairperson, who is also commerce minister Margret Mwanakatwe, has said that electricity remains a valuable input in the production of goods and services, and that any increases affects consumers directly and indirectly.
Ms. Mwanakatwe says lack of reliable electricity supply poses immense challenges for the economy and consumers of electricity.
She notes that the development of new power generation infrastructure and investment has been hampered by low tariffs which have not only placed large fiscal burdens on the treasury, but have also contributed to poor service provision in the sector.
And speaking at the same event, Energy Minister David Mabumba, has commended PMRC, for embarking on the research, stating that the report is a good communication strategy which will help in improving the energy sector.
He says he will engage more stakeholders to offer constructive criticism which will help government make constructive decisions in establishing new reforms in the energy sector.
Meanwhile, Mr. Mabumba has further stated that government is striving at providing energy efficiency in the newly constructed districts for economic viability.