Press Release
FOR IMMEDIATE RELEASE
ZESCO LIMITED ACKNOWLEDGES ERB DECISION ON EMERGENCY TARIFF ADJUSTMENT APPLICATION
Lusaka, 24 August 2024 — ZESCO Limited acknowledges the Energy Regulation Board’s (ERB) decision not to approve the Corporation’s application for a tariff adjustment during this emergency period.
The proposed adjustment was aimed at securing additional power supplies in light of Maamba Collieries Limited’s scheduled annual maintenance and the critically low water levels at Kariba Dam, which could potentially lead to a shutdown of the power plant.
The Corporation is currently reviewing the specifics of the ERB’s decision and evaluating its implications for operations. As ZESCO continues to navigate this power crisis, the Corporation remains committed to employing all available mitigating measures.
Issued By
ZESCO Limited.
ERB under Mr. Banda is being naive and shortsighted.
1. Did it ask Zesco the relevant questions? That would have addressed how it came up with 300MW as opposed to the shortfall of the demand power?
2. Did it ask Zesco the relevant question how and why it came up with US 14million or this was all that it could raise in the immediate term?
Instead ERB could have made a conditional approval of the proposed Emergence tariff increase. Conditional in that they speak to how they will raise funding to purchase more power. Either way, its about capacity. Hypothetically, lets just say for discussions sake. Zesco lack the capacity to raise the difference. ERB should have posed the question prior to the public meeting. Is the rejection productive?
Next week Friday is the 30th August. The said reasons for shut down should “kick in”. What happens when the defecit of Kariba and Maamba stop? Maamba you can postpone. But Kariba you can not. Its driven by a natural phenomenon.
Are we so naive that with all this information we “kick the can” down the road as we have done with tariffs for political expediance?
Are we going to listen to people who went to this meeting and some of their reason for rejecting the tariff increase are just “emotional outbursts” that show that they dont understand the prevailing and eminent situation at hand? They did bother to read what Zesco submitted or dont understand. No amount of “whipping” will make certain people comprehend. Some are just accustomed to hand outs and “skid row”. Derogatory as it may seem but one can not put it in any better way. A “Dr. Cephas” may his arguement against. But his argument was infationary and off the mark with the issue and rational given. Inflationary plausible but the rest was just irrelevant. But the inflationary aspect has tools that can be used to address CERTAIN amounts of it. The former Bank of Zambia spoke to the increase leading to f-ex supply constrains. That is another aspect that long term measures such as increase in production output of copper will address. But if we dont have power that structural aspect that is sought will not happen, and if now but when?
Its takes duck courage to move forward. The opportunity cost will have been lost because of hesitation and someone else will capitalise on our hesitation.
The Board at ERB needs to be pragmatic. Reading the possible politiking and what possibly led to the removal of Mr. Bowa will mean come 1st September will be sitting in the dark. ERB has the Zesco balance sheet and could have address if Zesco has the capacity. If not the back and forth between Zesco, Ministry of Energy and ERB is reckless beaurcracy. Lets have people take the “bull by its horns” address the elephant in the room.