The PF cabinet cabinet has directed that electricity tariffs in the country be increased immediately for all consumers, that is the PF way of overcoming current power shortages.
According to acting information minister Vincent Mwale, the 16th special Cabinet meeting resolved that increasing electricity tariffs in the country be expedited as a way to accelerate attraction of new investment in new power generation projects. “In view of this situation, Cabinet at its special meeting held on 13th August 2015 resolved that the migration to cost reflective electricity tariffs begin immediately as a way to speed up power projects development,” Mwale said.
“Currently, investments in power generation projects are not moving because investors cannot get a good return on their investments. This measure will therefore accelerate investment in the sector.” He said Cabinet had directed Zesco to apply to the Energy Regulation Board to determine the level at which migration to cost reflective tariffs will start. “Cabinet resolved that the lifeline tariff [tariff category R1 for residential] will increased by five times from 100 to 500 Kilowatt Hours (kWh) per month. The current tariffs of 15 ngwee per kWh will remain. This translates to just under 2 US cents per kWh. This will be made possible by reserving an amount of power from the old power stations, namely Kafue Gorge, Kariba and Victoria Falls for residential consumers. The R1 tariffs of 500 kWh per month will enable low income households to use electricity for their necessities,” Mwale said. According to data from ERB, metered residential consumers of electricity are categorized in three classes. R1 consumers are entitled to 100 kWh per month at 19 ngwee per kWh, and not 15 ngwee per kWh as indicated by Cabinet resolutions.