ENERGY EXPERT BACKS ERB DECISION TO EXTEND ZESCO EMERGENCY TARIFFS AMID LOW WATER LEVELS
Energy expert Boniface Zulu says the Energy Regulation Board’s decision to extend Zesco’s emergency tariffs until the end of October was unavoidable because of the utility company’s current challenges.
The ERB has extended Zesco’s emergency tariffs for another three months, from August to October, due to continued low Water levels in major reservoirs despite good rainfall earlier in the year.
In an interview with Phoenix News, Engineer Zulu has warned that without the emergency tariff, importing power would become too expensive, leading to widespread blackouts as Water levels in power reservoirs remain low while negatively affecting investor confidence and Zambia’s ability to secure reliable power supply.
He explains that Zambia’s position as a landlocked country with the lowest electricity tariffs in the region makes the surcharge necessary, to meet the higher cost of importing power.
Engineer Zulu further says Zesco’s problems will not be resolved overnight and has urged the company to learn from the crisis, strengthen its operations, and use the emergency levy only as a temporary measure while working on long-term solutions.
PN
But the bone of contention is where will Zeco get the money to finance and import power.
These are issues that should be explained and the engagement should be transparent.
I beleive last year, when this policy was adopted. Our cooperating partners were able to avail some grant that Zesco (ideally should have recieved; and I stand to be corrected, that cushioned the institution during the draught period).
This mitigated the stress that Zesco felt in the period. This year, there is no draught. Would Cooperating partners understand if we went back again with a “begging bowl” and say…well we are still hydro power dependent and transistioning in our power diversity, have the debt issue at Zesco and not to mention the contractual committment to export what we can. Can you avail another grant to finance possible power importation?
We know this is a hard ask. But hope this is what is happening in the background.
Otherwise our illerate and vulnerable SMEs will not understand and the opposition will sell this. When any sensible person will understand that ZESCO and government are caught between a “Rock and a hard place”.