The Energy Regulation Board (ERB) has announced an extension of ZESCO’s emergency electricity tariffs for an additional three months, from February 1 to April 30, 2025. This decision comes as Zambia continues to grapple with a severe power crisis triggered by insufficient water levels in major reservoirs, hindering power generation.
According to ERB Chairperson James Banda, the emergency tariffs were initially introduced in November 2024 after the board declared an electricity emergency due to ZESCO’s inability to meet national demand. A recent ERB review revealed that the power deficit still exceeds 1,000MW, necessitating the continuation of these tariffs.
Revenue Shortfalls and Challenges
Despite the tariff adjustment, ZESCO has failed to meet its monthly revenue target of $15 million. In November, the utility company raised only $2.4 million, followed by $7.6 million in December. The ERB attributed this shortfall to two key factors: delayed billing for postpaid customers and prepaid customers purchasing electricity in bulk before the tariff hike.
The extended tariffs will apply across all customer categories, including residential, commercial, and maximum demand consumers.
Additional Measures and Monitoring
As part of its directive, the ERB has instructed ZESCO to provide weekly updates on power generation and imports from regional suppliers, including Eskom of South Africa, Electricidade de Moçambique (EDM), and Zimbabwe Power Company (ZPC). Mr. Banda emphasized the importance of ZESCO adhering to published load-shedding schedules, keeping the public informed of changes, and promoting energy-saving practices.
The ERB also urged ZESCO to improve its commercial and operational performance, aligning with key performance indicators set by the regulator.
Public Reactions
The tariff extension has sparked mixed reactions among citizens. While some see it as a necessary step to address the power crisis, others remain critical of ZESCO’s management and the lack of significant improvements in power supply.
A commenter named Mayo Mpapa pointed out the delayed implementation of net-metering, which could potentially add an estimated 500MW to the grid. Another, TikkiTikki, called for outsourcing ZESCO’s management to enhance efficiency and reduce political interference. Critics have also questioned the impact of the tariff hike, accusing the government of exporting cheap power while importing expensive alternatives.
Others, like Razor, speculated that these extensions might continue indefinitely, warning citizens to brace for higher electricity costs as a permanent reality.
Looking Ahead
The ongoing power crisis highlights the urgent need for sustainable energy solutions in Zambia. With water levels in reservoirs remaining critically low, stakeholders have underscored the importance of diversifying the energy mix, including investments in solar power and other renewable energy sources.
As the crisis persists, all eyes remain on ZESCO and the ERB to deliver measurable progress in stabilizing the electricity supply and addressing Zambia’s energy challenges.