ERB EXTENDS EMERGENCY TARIFF RELIEF, BENEFITING HOUSEHOLDS AND SMALL BUSINESSES
Lusaka, May 1 (Astro TV) – Zambia’s Energy Regulation Board (ERB) has extended the emergency electricity tariff structure introduced earlier by Zesco Limited, delivering relief to over half a million households and thousands of small businesses amid economic pressures linked to the ongoing power crisis.
According to official figures, 537,496 residential customers — representing 56% of Zesco’s total consumer base — received tariff reductions of up to 20%. The adjusted tariff structure notably preserved the “lifeline” tariff for the most vulnerable households, with reductions of 20% and 5% applied to tariff bands R1 and R2 respectively.
“The emergency tariffs ensures that electricity remains affordable for ordinary Zambians,” said Zesco in a communication issued in November, 2024 following the granting of the initial emergency tariffs application. “Low to middle-income households have been shielded from the full brunt of the emergency pricing.”
In the commercial category, 14,172 small enterprises — including barbershops, welders, salons and market vendors — also benefited from a 15% reduction under the C1 tariff band. The measure is seen as a key – intervention to cushion small and medium-sized enterprises (SMEs) from rising operational costs triggered by inflation and reduced business activity.
“This tariff relief offers a lifeline to SMEs, which are critical to job creation and economic resilience,” said an analyst from a local business chamber.
Additionally, essential public services and infrastructure — including government hospitals, clinics, schools, old people’s homes, orphanages, street lighting and traffic signals — were exempted from the emergency tariffs altogether. This exemption is intended to safeguard basic services such as water pumping, sanitation, and healthcare during the ongoing energy crisis.
The ERB says the emergency tariffs are part of a broader strategy to manage Zambia’s power deficit while minimising social and economic disruption.