The Energy Regulation Board – ERB has exclusively revealed to the Zambian Business Times – ZBT that it will issue a comprehensive statement on the status and fate of the the Cost of Service Study.
The Cost of Service Study was initiated by ERB in 2019 with a contract awarded to Energy Market and Regulatory Consultant – EMRC, a UK based consultancy firm at a total cost of about US$600,000.
The Electricity cost of service study was sanctioned to provide a paper on which to base future electricity policies and plans to be formulated. Electricity Tariffs are among the factors that the study was expected to analyze and propose recommendations.
The ERB which also regulates petroleum imports, one of the highest import bills for Zambia has seen some board members resign with accusations of graft leveled against the new Energy Minister Chibwe Kapala.
When asked to give the status of the study which is key to have an independent, professional and non-politicized view of the electricity cost of service, ERB acting Public Relations Manager Musonda Chibulu told ZBT that “ ERB would advise that a comprehensive statement on the status of the cost of Service Study shall soon by issued through the governance structures of the study. We wish to request for patience as all queries in respect of the study shall be addressed.”
In July 2020, ERB disclosed to ZBT that notable progress has been made on the Electricity Cost of Service Study being undertaken by Energy Market and Regulatory Consultant – EMRC despite the covid 19 pandemic.
ERB then confirmed that EMRC had successfully completed and submitted the Inception Report which outlines the roadmap for the study. But 2021 is ending with no final report issued. EMRC was yet to respond to our query by time of publishing.
Energy experts have urged for technical and professional analysis of the energy sector to ensure quality decision making that would ensure Zambia’s long term interests are safeguarded. Energy remains a key and strategic sector vital for powering Zambia’s development journey.
See other ZBT articles on electricity cost of service Electricity Cost of Service Study progresses… and Electricity Cost of Service Study to load forecast for next 20 years
