Kitwe residents have rejected the proposed 66 per cent electricity tariff increase by Zesco.
And Energy Regulation Board chairperson, Sikota Wina, says Zesco’s application to review tariffs has been made at a time when the electricity sector was facing supply challenges owing to the power deficit in the Southern African region.
Speaking during the official opening of the public hearing on the Zesco Tariff Review held at Endinburgh Hotel in Kitwe today,Mr Wina said the application comes at a time when the world was undergoing economic recession which has resulted in a relative reduction in demand for electricity in Zambia.
He noted that some major consumers in the mining industry have scaled down their operations, a situation which he said has led to a reduction in power demand.
Mr Wina observed that the ERB was mindful of the concerns of the public regarding the performance of the utility as has been manifested in power black outs experienced on Monday.
He added that his organisation has been conducting a detailed and analytical review of the Zesco application and utility’s performance vis-a-vis the multi-year tariff framework effected in January 2008.
And speaking later at the same function, Zesco acting Managing Director, Musonda Chibulu, said his firm was in dire need of over US $800 million to construct new and rehabilitate existing infrastructure.
Mr Chibulu said the company was in need of millions of Dollars to complete its major rehabilitation projects and meet the Millenium Development Goal on increased access to power for all citizens by 2015.
But a representative for Kitwe residents, Councillor Christopher Kangombe, said the proposed increase was unreasonable as it has come at a time when over 10,000 people on the Copperbelt had lost their jobs due to the global economic crisis.
He observed that the current state of the economy has resulted in excess capacity of electricity as a result of industry scaling down or closing down.
He added that an increase in tariffs would work to worsen the situation as industries would be less competitive and have increased costs.
Another resident, Neville Ravensdale, said Zesco has taken so much power to people who cannot afford to pay for electricity.
Mr Ravensdale said it was unfortunate that the company was forcing a few profit making companies to subsidise incredibly expensive projects.
ZANIS
I totally support Kitwe residents for rejecting zesco tariff increment.It is already a nightmare to pay out these exorbitant zesco bills,what’s the point of increasing the tariff if the majority can barely afford to pay out the bills with the current one.I think this is sheer stupidity!
increase tariffs for what when power outages are the order of the day. you want to pocket the money? Mulibe nzelu muli fipuba
Prepare
I think Zesco is a bunch of morons, how can they increase the tarrifs by 66% when the salaries are being increased by 15%? I know its not only Kitwe residents who will reject the increment but all well meaning Zambians will.
Following “He observed that the current state of the economy has resulted in excess capacity of electricity as a result of industry scaling down or closing down. He added that an increase in tariffs would work to worsen the situation as industries would be less competitive and have increased costs” I am with all those who are against the 66% percent increment at once.
My proposal is that ZESCO must increase the tarriffs in 6% step sizes every 6 months as this will enable everyone to cope with the situation until the 66% increment is achieved.
Such will also be in line with the recent 15% increment of civil servants’ pay as well as the country growth which is rated at about 6%.
Have a blessed day you all.
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Prevention is better than cure.
Imwe ba f k l a u want to increase the tariffs so u can again use ZESCO’s money to find MMD’s campaign this time takuli you are taking people for granted…Are telling me that all the board at ERB thinks increasing tariffs is the only way to raise money?Are u telling me that u ERB guys with those suits and nice cars only sit in the office to think of increments every time?What is the role of the board kanshi?There are so many ways of raising capital for a company e.g floating shares on the stock exchange is one of them..Am only a grade a first year student but i can think better than all of the entire ERB.
Kitwe residents keep it up. The increment is not realistic at the expense of us the poor people.
Teachers salaries incemented by %15 and zesco tarifs incremented by %50!! WOW!!!! where are we heading?
whats wrong with zambia. they increase salaries by 15% and increase electricity by 66%? And its not only zesco that will increase, its almost everything once power goes up. so what do they want the poor teacher and nurse to do? where is captain solo please twachula.
this is not fair the let them reduce there salalies first and think of the 66% !!11
this is not fair let them reduce there salalies first and think of the 66% !!
Let them increase we will resort to Solar and we will see where their 66% increase will take them.
#5 Mwiyi/ meastro whatever you have the idea but not every 6 months. 6% every time there is a 15% salary increment, other wise we shall rise like the iranians, and bring about a revolution. This country has gone to the dogs and everything just sickens you.
Ubuntungwa, ngamwachula does not mean you throw away your principles and sell your soul to the devil. Chula with dignity there are many ways of resolving problems than crying for captain Solo’s help.God forbid.
No Captain Solo. To hell with captain Solo.
It seems like Ba zesco and the Gov at large have been sleeping, they need to wake up and some to reality, what increase? This is crazy,
Zesco needs a management change and not just hiking tarriffs. All Zesco employees do not pay for electricity. As a start let staff pay at a subsidised cost not zero. Apofye sister companies trade at arms length prices not zero cost. Chili shani kanshi ba Zesco.
it’s unacceptable that 70% of the money ZESCO makes is spent on wages. What’s the point of raising tariffs when the current finacial structure is mainl for consumption by emplyees and very little is used for improvement of service delivery
ZESCO has the highest # of directors managers et el. thecompany needs to be restructured to make it more viable. It also needs to agressively pursue all of it’s debts especially with GRZ.
I believe ZESCO is sitting on money that hey can use for expansion without choking out the consumers with a 66% tariff hike.
Zesco and your board be realistic, salaries are being increased by 15%, but you want to increase tarrifs by 66%, where do you think the voters will get the money from?
God help us. ZESCO needs to ensure that all people supplied with power pay their Bills than tormenting the few that pay huge amounts. I have heard of alot of areas were people use electricity but still dont pay. they should accelerate the units meters to the rest of the country and also reduce funding ku government.
Zambians should stand together and reject this increament
Thats the way to go kitwe, 15% increament for civil servants compared to the proposed 66% in tariffs. malabishi
No way
This Zesco tariff thing has been going on forever. Sad thing is Kitwe residents will say ‘no we don’t want an increase’ but what Zesco does is just inform, arrange some kind of forum so as to legitimize their case and regardless of the out come, they increase the tariffs. This is sickening. This is when we need PF and UPND to shout at the top of their voices and tell Zesco stop rather than make rallies about Dora.
What are they thinking? People are on strike because of low salaries and they want to increase the tariff by 66 percent. I’m sure, they want people fail to pay so that they can just disconnect and by so doing people, won’t be able to watch TV or listen to the radio. Nika gimmicky! MMD wants people to live in the dark.
RUBBISH…..do you want to kill all people in Zambia. you give them 15% increment and again you take from them 66% so the net increment is -51%. So you are taking from them 51% of their salaries….what a country. Is Zambia a country with leaders or with devils?? LETS GO FOR REVOLUTION 2011.
ogdopU