Zambias power utility ZESCO has disclosed that the state-owned company is waiting for regulator Energy Regulation Board – ERB to guide on way forward before the utility can start taking orders for new connections under the standard connections category.
This follows increasing customer complaints that ZESCO is only giving very high quotations which most newly built home owners are struggling to pay for. Some have stated that the special connections fees being quoted right now are exorbitant and most low income earners can not afford.
ZESCO has proposed to increase some connection charges by over 500%, through an application to ERB that raised public uproar. The cost of living has been on the upside with most households facing steep fuel price increases and a general reduction in liquidity in the market affecting the majority workers in the informal sector.
ZESCO which operates as a monopoly in most part of Zambia may be avoiding taking new standard connection orders fearing that they would connect new customers at a loss and further exacerbate their already strained cash flows. The company says it expects to start signing and making quotation for new connections and installations soon once ERB gives a go ahead.
Speaking an exclusive interview with the Zambian Business Times – ZBT, ZESCO Spokesperson Henry Kapata clarified that it is only the standard connections category that is on a hold but the utility is issuing quotations and once paid, proceeding to connect new customer with specific scope of works.
He said the only one which is on hold is the standard ones. “We do that [connections] if we look at the scopes of work and we say this is what is required. When customer pay, we are able to connect them. But for those with standard connection requirements, they are the ones we don’t give quotations for, so for now, we wait for feedback from ERB.” he told ZBT.
