The Zambia Association Manufactures – ZAM has called that the Energy Regulations Board – ERB release a cost of service study around the proposed revision of electricity tariffs to know the actual cost of generating hydro power and how much it will cost Zambian consumers and manufactures to utilize it.
ZAM representative Chipego Zulu has stated that there is need to provide evidence and statistics if discussions around power supply and pricing are to be transparent and ensure accountability, adding that there is further need to ensure alternative and off grid sources of energy are being promoted to reduce the pressure on the main national grid.
The power utility company ZESCO had in February this year applied to ERB for the revision of electricity tariffs which did not go through but last week, the board announced to the public in a statement that it will hold discussions regarding the proposed increment of about 113%. The decision is however yet to be communicated as mixed feelings have risen from the discussion of the increment.
Speaking at a joint media briefing with the Consumer Unity for Trust Society – CUTS, Chipego reiterated that a steady supply of power is always necessary for the growth of the economy and manufacturing sector in particular as it contributes to productivity hence the extended load shedding hours create challenges in the sector as it leads to an increase in the cost of production for local manufactures.
She said an increase in electricity tariffs has to be accompanied by the necessary evidence as the proposed average of over 100 % increment affects the sector’s cost of energy, adding that the increasing tariffs will not necessarily solve the problem of power deficit hence the need to come up with a sustainable approach to addressing the national issue of power deficit.
At the same event CUTS Center Coordinator Chenai Mukumba explained that an increment in electricity will badly affect both consumers and manufactures as it will indirectly increase the cost of doing business and on goods and services.
She added that apart from affecting players in the sector, many local Zambian households will also be affected as the cost of living will go high making it difficult for the fight towards reducing poverty levels in the country hence to reduce the tariffs downwards.
“Whatever affects the manufacturing sector, automatically affects consumers. ZESCO’s failure to adhere to the schedule is also affecting consumers because they are failing to plan for their daily services hence negatively impacting the growth of the sector,” She said.
ZAM and CUTS have also parnered to deliver Zambia’s second Annual Consumer Gold Star Awards schedued to take place on 15th of November 2019. The awards are in line with the proudly Zambian Compaign which encourages consumers to think local in their purchasing decisions and further encourages manufacturers to aim at producing high quality products and services.
