UNDERSTANDING ZESCO’s BILLING SYSTEM IN THE ERA OF 24-HOUR POWER SUPPLY

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UNDERSTANDING ZESCO’s BILLING SYSTEM IN THE ERA OF 24-HOUR POWER SUPPLY

THE recent resumption of 24-hour electricity supply by ZESCO marks an important milestone for Zambia’s power sector. Improved rainfall patterns and the coming on board of new power stations have significantly eased pressure on the national grid, bringing an end to prolonged load management. The article is long but will help you understand what really happening. Please read!!!!



However, alongside this welcome development, many households and businesses have reported faster consumption of prepaid electricity units, leading to concerns and widespread claims that ZESCO is “deducting units” or “speeding up meters.”



To separate fact from perception, I undertook an independent assessment of the ZESCO billing and metering system. The findings are clear and worth stating upfront.



WHAT ZESCO CANNOT DO

1. ZESCO cannot deduct units that have already been purchased
Once electricity units are loaded onto a prepaid meter, they belong to the customer. The meter is a certified measuring device and cannot remotely remove units arbitrarily.



2. ZESCO cannot increase the speed at which a meter consumes units

Prepaid meters measure actual electricity usage in kilowatt-hours (kWh). They do not “run faster” when power supply improves. Consumption only increases when more electrical energy is used.



So What Is Really Happening?

The increase in unit consumption is real, but it is driven by changes in usage patterns, not by billing manipulation. Several factors explain this shift.



1. LOWER CONSUMPTION DURING LOAD SHEDDING

During load management, households and businesses:
• Used electricity for fewer hours per day
• Delayed or reduced use of energy-intensive appliances
• Loaded units that lasted longer because power was not always available



As a result, electricity consumption was artificially suppressed.
Now that power is available 24 hours a day, normal usage has resumed and in many cases increased.



2. SHIFT FROM ALTERNATIVE ENERGY BACK TO ELECTRICITY

With stable power supply:
• Many households have moved back from gas stoves to electric cookers
• Electrical geysers, kettles, irons, and heaters are being used more frequently



Cooking and water heating are among the highest electricity-consuming activities in a home, significantly raising monthly usage.

3. INVERTERS AND SOLAR SYSTEMS STILL DRAW FROM ZESCO

During load shedding, many households installed:

• Inverters
• Solar systems with battery storage

What is often overlooked is that:



• Batteries are frequently recharged using ZESCO power when supply is available
• This creates additional electricity demand, even when lights and appliances appear to be running on “backup power”
This charging load adds quietly but significantly to total consumption.



4. EMERGENCY TARIFFS HAVE BEEN REMOVED

During load management, ZESCO introduced emergency tariffs to facilitate power imports. These tariffs were higher and temporary.


With improved generation capacity:

• Emergency tariffs have been suspended
• The country has reverted to normal tariffs approved by the Energy Regulation Board (ERB)

Importantly, tariffs have not increased recently. What has changed is how much electricity consumers are now using.



UNDERSTANDING ELECTRICITY TARIFFS IN ZAMBIA

ZESCO uses a progressive residential tariff structure, meaning the price per unit increases as consumption rises. This system protects low-income households while encouraging energy efficiency.



SUMMARY OF ZESCO RESIDENTIAL TARIFF BANDS

The ZESCO residential electricity tariff is structured into four progressive bands based on monthly electricity consumption:

• Band R1: For consumption between 0 and 100 kilowatt-hours (kWh) per month, the tariff is K 0.35 per kWh.
• Band R2: For consumption between 101 and 200 kWh per month, the tariff is K 1.00 per kWh.
• Band R3: For consumption between 201 and 400 kWh per month, the tariff is K 2.42 per kWh.
• Band R4: For consumption of 401 kWh and above per month, the tariff is K 3.45 per kWh.



This progressive structure means that electricity becomes more expensive per unit as total monthly consumption increases.

HOW BILLING WORKS: A SIMPLE EXAMPLE (153 kWh)

• First 100 kWh at R1:
100 × K 0.35 = K 35.00
• Remaining 53 kWh at R2:
53 × K 1.00 = K 53.00
Electricity subtotal: K 88.00



Government taxes are then applied:
• Excise Duty (3%)
• VAT (16%)

This progressive structure explains why higher consumption results in a higher average cost per unit, even though lower bands remain subsidised.

WHAT THE NUMBERS SHOW

When taxes are included, the effective average tariff rises with usage:
• 100 kWh → ~K 0.42 per kWh
• 200 kWh → ~K 0.81 per kWh
• 400 kWh → ~K 1.85 per kWh
• 1,000 kWh → ~K 3.21 per kWh



This is deliberate policy design, not a billing error. The price you pay depends on the usage of power. This was designed to benefit low income households who usually use less power.

REGIONAL PERSPECTIVE

Across Southern and Eastern Africa:
• Zambia remains among the lowest-cost electricity markets for residential users at low consumption levels
• Progressive tariffs are standard practice in countries such as South Africa, Kenya, Tanzania, and Namibia
• Higher-use consumers everywhere pay more per unit to support system sustainability



Zambia’s structure is therefore not unusual, and in fact remains relatively consumer-friendly for low-usage households.

CONCLUSION: WHAT HAS REALLY CHANGED?

ZESCO has not:
• Deducted previously purchased units
• Manipulated meters
• Quietly raised tariffs


What has changed is:
• Continuous power availability
• Higher appliance usage
• Recovery of outstanding fixed charges
• Return to normal consumption patterns

Understanding how electricity is billed, especially under a progressive tariff system, is essential for households and businesses to plan, budget, and manage energy use effectively.
As Zambia moves into a period of improved power stability, energy efficiency and informed consumption will matter more than ever.

LUBINDA HAABAZOKA

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