In order to satisfy future electricity demand and develop the energy sector in Zambia, Energy Minister Matthew Nkhuwa has launched the Electricity Cost of Service study which will undertake the load forecast and develop the system expansion plan to meet the future demand in an effective manner.
Nkhuwa has explained that the study which has been made possible with financing from the African Development Bank – AfDB will establish the cost of generating, transmitting and distributing power in the most efficient manner and translating the costs into the unit cost of energy for each customer category.
Speaking during the launch of the study in Lusaka on December 3, 2019, the Energy minister added that energy being an engine for economic growth and development in the country, needs cooperating partners and support from various stakeholders for it to thrive. ERB has engaged Energy Markets and Regulatory consultants – EMRC of the UK at a cost of about US$600,000.
And commenting on the increase of fuel pump prices, Nkhuwa said the move is eminent due to the current depreciation of the Kwacha which is currently trading at K14.80 adding that the Energy Regulatory Board – ERB will analyze the effect of the depreciation of the Kwacha and determine how much can be increased in t fuel pump prices so that the price enables importers to make orders for the next quarter.
At the same event ERB Executive director Langiwe Lungu said the study will review the current electricity demand forecast undertaken by Japan International Corporation Agency – JICA in 2010, on behalf of the ministry of energy and prepare a revised demand forecast for the next 20 years.
She added that the study will also carry out a detailed review of ZESCO’s cost structure, the current level and will benchmark ZESCO’s cost with the cost of efficient utilities with similar operating conditions as ZESCO and indicate areas of improvement to acceptable efficient performance and efficiency standards.
“ERB will have the overall responsibility for the management and supervision of the study and in order to ensure that stakeholders are not left behind, consultative workshops have been planned during the course of the study to engage all the industry key stakeholders. They will also require to engage stakeholders during data collection, “She said.
