THE TRUTH ABOUT THE NEW ELECTRICITY TARIFFS
By Dr. Johnstone Chikwanda, energy expert
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The recent increase in electricity tariffs has created a lot of panic among members of the public. Here is the truth:
1) In 2023, ERB reduced the tariff for consumers who use below 100 units by 7 ngwee per unit. In 2024, ERB has increased the tariff for this category by 4 ngwee per unit, meaning that this category is still saving by 3 ngwee per unit. It is wrong to say this category consisting of the most vulnerable has been made worse off. The tariff is still below where it was before last year’s revision.
2) In 2023, ERB reduced electricity for consumers who use 300 to 500 units by 40 ngwee per unit. In 2024, ERB has increased the tariff for this category by 15 ngwee per unit, meaning consumers in this category are saving 25 ngwee per unit. It is wrong to say that this category has been made worse by the recent adjustment as the tariff is still below where it was before last year’s revision.
3) In 2023, ERB reduced the tariff for small businesses who use less than 100 units by 40 ngwee per unit. In 2024, ERB has increased by 11 ngwee per unit, meaning that the small businesses in this category are saving 29 ngwee per unit. It is wrong to say the small businesses have been made worse. Their tariff is still below where it was before last years price revision.
4) In 2023, ERB reduced the tariff for medium businesses who use 100 to 300 units by 60 ngwee per unit. In 2024, ERB has increased tariff for these businesses by 20 ngwee per unit, meaning that this category is saving 40 ngwee per unit. It is wrong to say these businesses have been made worse as the tariff is still below where they were before last year’s revision.
WHAT DOES THIS MEAN?
It means that electricity tariffs for many customer categories who are the most vulnerable are still in a reduced position when you net off last year’s reductions and this year’s upward adjustments.
HAS GOVERNMENT DELIVERED ON ITS PROMISE TO REDUCE THE TARIFFS?
1) Yes, for several customer categories, the net effect of the reductions received last year and this year’s upward adjustment show that the tariffs have been reduced.
2) The burden of new electricity tariffs has been shifted to consumers who use a lot of electricity above 500 units. Both last year and this year, the trend is the same for this category. There is also one category that uses 100 units to 300 units, which has a slight upward movement.
In conclusion, some of the customers who are calling and expressing their desperation have not been made worse at all compared with where they were before change of government. The overall position for many of the customers’ categories is that they are still paying less than what they were paying before last year’s tariff adjustment. There have been far big tariff adjustments before, like the 113% hike and the 75% hike of 2019- the last hike. The reason this is happening is to improve the viability of the Zambian Electricity Industry in order to attract more investors. We desperately and urgently need investors in the sector.