ZESCO SEEKS EMERGENCY TARIFF HIKE TO COUNTER POWER CRISIS
ZESCO Limited applied to the Energy Regulation Board for an emergency tariff adjustment to address the increasing costs of sourcing replacement power amid a worsening drought that has severely impacted hydropower generation.
This adjustment is necessary to raise funds for purchasing additional electricity from external sources and deploying inland diesel power generation plants, aiming to mitigate the ongoing power crisis.
The proposed tariff adjustments will affect residential, commercial, and maximum demand customers. Residential customers will see an expansion from four to six tariff bands, with increases in costs for those consuming over 200 units, while maintaining the lifeline tariff for the first 100 units. Commercial customers will experience a reduction in tariffs for low consumption and significant increases for high consumption, and maximum demand customers will face increased tariffs for 30% of their electricity usage.
ZESCO's goal is to generate $14 million monthly to contribute to the $68 million required to secure 300 MW of additional electricity from South Africa, Mozambique, and inland diesel generators. This power is crucial to replace the capacity lost during scheduled maintenance at key power plants and to support the deployment of diesel generators, while also promoting energy efficiency and alternative energy sources among consumers.
The emergency tariff adjustment, if approved, will be temporary and subject to periodic review by the ERB. Exemptions are in place for certain customer categories, including those in the Social and Water Pumping sectors, as well as for maximum demand customers with active Emergency Power Supply Agreements.