THE Zambia Consumer Association (ZACA) has opposed Zesco’s intention to hike electricity tariffs by November, saying the move will increase the cost of living.
ZACA executive secretary Muyunda Ililonga says prices of goods and services are likely to increase as various industries will incur high production costs due to the planned tariff hike.
The proposed tariffs are exclusive of three percent of excise duty and 16 percent value added tax (VAT).
Zesco has re-applied to the Energy Regulation Board (ERB) for an upward adjustment by November this year to enable it to collect adequate financial resources to maintain infrastructure.
Zesco indicates that it wants to replace old equipment and invest in new power stations and other infrastructure to meet the increase in demand.
If approved, metered residential tariffs with consumption of 100 to 300 kilowatts (KW) per hour will increase to K343.46 from K250.70 while consumption above 301KW will increase to K559.81 from K408.62 with fixed monthly charges increasing to over K20,000 from the current K14,629. Prepaid energy charges will increase to K381 from K278.
Commercial tariffs with consumption of up to 700kw per hour will increase to K330 from K266, with monthly fixed charges expected to rise to K59,213 from K41,515.
According to the proposed Zesco tariff adjustments availed to the Daily Mail for 2012-13 issued by director of corporate affairs and business development Bestty Phiri, maximum demand tariffs with a capacity of between 16 to 300 kilo volts amperes (KVA) per month will increase to K14,800 from K11,690, with the fixed monthly charge expected to increase to about K145,000 from K114,000.
But Mr Ililonga said the ERB should reject the application because “past experience has shown that the increment of tariffs has not helped to improve the company’s performance”.
“The ERB has from 2000 approved the upward adjustments of electricity tariffs with the expectation that Zesco will improve but alas the services have been unsatisfactory,” Mr Ililonga said.
He said the challenges faced by Zesco cannot be resolved by tariff increments, adding that the ERB should intervene in the manner the power utility is managed and structured.
He also said it is sad that Zesco is even contemplating increasing tariffs despite the continued load-shedding.
Further maximum demand tariffs between 7,500 and 10,000 kva per month will be increased to over K52, 000 from K39,717 while the monthly fixed charge will increase to K1,456,125 from K1,103,124.
Fixed charge tariffs for schools, hospitals, orphanages, churches and other social services will be increased to K49, 402 from K41, 515 per month.
[Zambia Daily Mail]
Mmmm iliko rather bad, Maids wages up, cost of food stuffs have gone up na electricity?? Whom did they refer to as will put more money in your pockets??? Kwena ni Donchi Kubeba
BWAFYA. u CAN NOT SOLVE THE CURRENT LOADSHEDS BY TARRIF INCREMENTS. tHE WHY CANT ZESCO FIRST TELL US WHERE THE MONEY THEY COLLECT GET SPENT. PRIVATE COMPANIES DONT RISE TARRIFS WHENEVER THEY WANT TO UNDERTAKE CAPITAL PROJETS
Just sell Zesco to serious investors Chinnese
electricity tariffs increase will bring back 1986 riots
– Just borrow money from the Chinese.
– let the people pay for the final service without load shedding.
ZESCO seems to be overstaffed to a point where they need to adjust tariffs whenever they foresee a salary increment or bonuses.
gUD MOVE PLEASE INCREASE EVEN MORE IT WILL BRING MORE MONEY IN GOVT POCKETS THAT IS WHAT WE MEANT ASSHSSHHHSHHH
If they made electricity available to more people they would collect more revenue but these ZESCO managers have failed to think. instead they provide less electricity to fewer people and are wondering how come the short fall. Zesco’s failure to service the nation is what has resulted in their shortfall. increasing tarriffs is definitely not the answer. They just increased last year and have shown nothing for that increase. ZESCO management need to fired and replaced.
They dont have the capacity to meet the demands hence load shedding
SELL ZESCO, SELL ZESCO, SELL ZESCO!!!!!!!
Spot on Cleo, zzzzzzzzzzeeeeeeesssssssssscccccccccccoooooooooo shuld be sold or just be given to chinese
Thanks to ZACA for talking on behalf of the people, and now you the executive director, resign if you have failed to run the company. why even increase the tariffs with this tedious load shedding we are having on a daily basis.
Africa is a pity of the world cursed with natural resources, governments change but but people’s lives just get worse and worse. Our leaders are allergic to thinking. Maybe they should just sell the county to willing buyers you know… I’m tired of hoping and soothing myself everyday that one day things will get any better,
I feel you! You are as frustrated as I am. its simply taking us to a point were we are beginning to think and accept that black people can never develop a country compared to whites, Asians, etc.
a little warmth in the blog, Because of you, there is a little more grateful in my life, Because of you, there is more wonderful in life~~~hope each blog can give you a little help and make you enjoying them!!!!
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Network never stretched out their arm to people, but contact you and me; We never meet and contact each other, but we are supporting each other.