ERB Approves Emergency Electricity Tariff Adjustments Amid Power Crisis

.... Banda says the tariff changes aim to provide relief for low-income households while ensuring utility financial stability.

By Francis Maingaila ♥️ 

Lusaka, Zambia24 - (10-10-2024) - The Energy Regulation Board (ERB) has approved emergency tariff adjustments for residential and commercial electricity consumers in Zambia, effective from November 1, 2024, to January 31, 2025. 

This decision aims to alleviate financial pressure on low-income households amid a severe power crisis that has drastically reduced the country’s electricity generation capacity.

James Banda, ERB Chairperson, told journalists at a media briefing that the new tariffs will include reductions for residential customers classified under categories R1 and R2, targeting relief for vulnerable households. 

“We recognize the immense pressure that rising costs have placed on low-income families, and our goal is to provide them with some relief during this challenging time,” he stated. 

To balance these reductions, the ERB will increase tariffs for residential consumers using more than 200 units, as well as commercial customers consuming approximately 500 units.

Banda noted that the decision is necessary due to a significant drop in the country’s electricity generation capacity, which has plummeted from 900 megawatts to about 300 megawatts.

 “This decrease has resulted in extended periods of load-shedding, affecting both businesses and residential consumers,” he explained. He emphasized the need for the utility to maintain financial stability while addressing the energy crisis.

“We are prioritizing local power generation sources that are cost-effective to reduce reliance on imports and enhance the sustainability of our energy supply,” Banda added. 

He also highlighted the importance of transparency and accountability in the process, assuring that the ERB would continue to monitor the situation closely.

In addition to the tariff changes, the ERB has mandated that the utility submit a compliance report within 30 days. 

This report should detail its plans for improving operational efficiency and meeting the board's directives. 

Banda stated, “We expect to see actionable plans that will enhance the efficiency of operations and ensure compliance with our directives.”

The board’s decision comes after extensive public consultations, allowing consumers to express their concerns and suggestions regarding the proposed tariff changes. 

“We have listened to the voices of the public, and their input has been invaluable in shaping our final decision,” Banda said.

The ERB’s adjustments reflect its commitment to balancing the needs of vulnerable consumers with the financial requirements of the energy sector, particularly in light of the ongoing challenges posed by the power crisis in Zambia.