- The Energy Regulation Board in Zambia has approved an emergency tariff increase for ZESCO, effective November 1, 2024, to raise about $15 million monthly for importing 788 megawatts of electricity.
- The move aims to address the country’s electricity deficit caused by drought, improving supply from three to seven hours daily for consumers.
Zambia’s Energy Regulation Board (ERB) has approved a plan for an emergency increase in electricity tariffs proposed by the state power utility, ZESCO Limited. This adjustment aims to raise approximately $15 million per month from retail customers to help fund the importation of 788 megawatts of electricity.
The new tariffs will take effect on November 1, 2024, and remain in place until January 31, 2025, when a new contract will be reviewed. James Banda, the chairperson of the ERB, emphasised the necessity of this decision in light of the severe impact that recent drought conditions have had on ZESCO’s operations.
He stated, “As ZESCO is a major power supplier in the country, it is impossible to ignore the devastating impact the drought has had on it. To this effect, ERB has approved ZESCO’s application to increase tariffs during the emergency period.”
Zambia has been grappling with a critical electricity deficit, primarily due to poor rainfall during the 2023/2024 rainy season. This has significantly hindered electricity generation at the nation’s major hydroelectric power plants.
Hydro-generated electricity fulfils around 80 per cent of the country’s electricity requirements, making reliance on consistent rainfall crucial for power generation. The approved tariff hike is expected to improve electricity availability, increasing supply from the current average of three hours daily on a rotational basis to approximately seven hours.
This improvement is vital for both residential and commercial consumers who have been struggling with frequent power outages. In response to the crisis, ZESCO has also explored various strategies to stabilise the power supply and ensure that essential services can operate effectively.
The situation underscores the urgent need for investment in alternative energy sources and infrastructure improvements to diversify Zambia’s energy portfolio and reduce dependency on hydroelectric power. As the emergency tariff adjustments come into effect, stakeholders will be watching closely to see if this measure can alleviate some of the immediate pressures on the power supply while providing a pathway toward long-term energy stability in Zambia.
The ERB’s decision reflects a balancing act between ensuring adequate electricity supply and managing the financial sustainability of the power utility amid challenging environmental conditions.