As directed by President Edgar, Lungu at his press briefing last week, the Energy regulation Board has allowed Zesco to increase the prices of electricity from the average of 37 ngwee to one kwacha thirteen ngwee per kilowatt effective midnight Wednesday. This will cripple a lot of the already limping industries, just watch and see what happens in the next few months.
This is according to a statement issued to the PF controlled ZNBC news by the Energy Regulation board.
The ERB says the electricity tariffs are according to the cost of supply for each specific customer category which range from the residential, services, commercial and maximum customers.
The board has further disclosed that the fixed monthly charge for residential customers remains unchanged at 18.23 kwacha.
The ERB has claimed that the proposed tariff adjustment is also expected to generate revenue that will facilitate investment of 3.7 billion USD in generation projects by adding capacity of 1500 mega watts to the national grid.
The board has also directed ZESCO to reduce allocation of subsidized electricity to ZESCO staff from 2000 kilowatts –hours 300 kilowatts –hours per month.
ZESCO recently applied to ERB to have the electricity tariffs adjusted upwards due to the economic environment that has worsened by the drastic hydro power generation capacity as a result of low water levels.
The adjustment will further affect operational costs for mines and manufacturers including millers and will consequently lead to price increments for most commodities.