ZESCO REQUESTS EMERGENCY TARIFF ADJUSTMENT DUE TO ESCALATING POWER SOURCING COSTS AMID DROUGHT-INDUCED DEFICIT

ZESCO REQUESTS EMERGENCY TARIFF ADJUSTMENT DUE TO ESCALATING POWER SOURCING COSTS AMID DROUGHT-INDUCED DEFICIT

ZESCO Limited has applied to the Energy Regulation Board (ERB) for an emergency tariff adjustment to address the rising costs of sourcing replacement power. This request comes in response to the growing power deficit caused by drought-induced reductions in hydropower generation, with water levels continuing to decline.

The proposed tariff adjustments are intended to generate the necessary revenue to purchase additional power imports and deploy inland diesel power generation plants. These measures are crucial to mitigating the ongoing power crisis and minimizing its impact across various sectors of the economy.

Basis for the Emergency Tariff Adjustment

ZESCO’s application is grounded in the gazette issued by the ERB on April 12, 2024, declaring a state of emergency under Part (ii) Article 18 of the Electricity Act No. 11 of 2019. Having met the requirements of subsections (1) and (2) of Article 18, ZESCO submitted the proposed tariff adjustment as mandated by subsection (3), which states: “Where the emergency is declared, the licensee shall submit the proposed tariff adjustment to the Energy Regulation Board for approval.”

The proposed changes involve alterations to the tariff structures and rates for residential, commercial, and maximum demand customers to enable partial cost recovery and support demand-side management. Detailed information on these proposed adjustments is provided in the attached posters.

Issued by
ZESCO Limited.