The Energy Regulation Board (ERB) has approved ZESCO’S application for emergency tariff adjustments for residential, commercial and Maximum Demand (MD) consumers, effective from November 1, 2024, to January 31, 2025.
Speaking during a media briefing this afternoon, ERB Board Chairperson James Banda said this decision is based on ZESCO proposal to reduce the tariffs for residential RI, R2 and commercial Cl customers which will provide relief for low-income households and Small and Medium Enterprises (SMEs.)
In addition, Mr. Banda noted that these proposed reductions will also ensure that tariffs are affordable to this category of consumers.
He said ZESCO also committed to reducing hours of Load shedding and publishing predictable load shedding schedules.
Mr. Banda added that this reduction will provide relief to households and businesses, affirming that it was submitted by businesses during the public hearings that the cost of running diesel generators is way above the proposed tariff adjustment.
He explained that ERB also considered ZESCO’s Financial Performance which showed that the Utility does not have adequate resources to finance the additional power imports.
And Mr. Banda stressed the need to support the Utility to raise the required funds to meet its funding gap for urgent importation of additional power aimed at alleviating the load shedding situation.
Meanwhile, the ERB Board Chairperson directed ZESCO to explore sourcing extra revenue from other sources and other financially prudent options for power imports.
Mr. Banda said the power utility has also been directed to prioritize local power purchases provided it is cost effective when compared with the Southern Africa Power Pool (SAPP) and other sources.
He said ZESCO should also adhere to the published load management schedule as communicated to its consumers and ensure a maximum of 17 hours of load shedding.
Mr. Banda further stated that ZESCO must heighten sensitisation of the public on the emergency power situation and emergency tariff and provide information on energy efficiency measures.
He also directed ZESCO to provide weekly updates to the ERB, providing evidence that revenue raised from the emergency tariffs is spent solely on the purchase of emergency power.
Mr. Banda said the power Utility should also report on actual exports and energy imports from Eskom, EDM, ZPC and any other sources, as the case maybe, and any technical challenges including transmission bottlenecks, as they arise.
He also directed ZESCO to ensure that it adheres to the ERB Key Performance Indicators.
Mr. Banda added that the Utility should within 30 days submit a report showing the implementation of the short term, medium- and long-term measures to enhance efficiency.
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