22 November 2007
Ndola — ELECTRICITY Consumers have proposed a lower electricity tariff increase than what Zesco intends to effect, which they say will be beyond the reach of many Zambians and could kill industry.
Zesco managing director, Rodnie Sisala has, however, said the current tariff increase proposals were imperative if the company was to continue operations and meet the ever-soaring demand for power.
Most of the participants at a day-long Energy Regulation Board (ERB) public hearing on the proposed Zesco tariff hike held in Lusaka yesterday, said they were not opposed to the increases but the magnitude of the adjustment.
Leading a group of contributors dubbed "rejecters", Zambia Chamber of Commerce and Industries (ZACCI) chief executive officer, Justin Chisulo proposed an adjustment of between five and 10 per cent.
Mr Chisulo said the current intended increases of up to 75 per cent were unjustifiable, hence the ERB should reject them and ask Zesco Limited to present fresh proposals.
He said the company had been profitable with the current tariffs and if it made losses it could be as a result of foreign exchange losses arising from contracted loans and its power exports.
Mr Chisulo said Zesco staff costs amounted to about 50 per cent of the turnover while it had about K300 billion which had not been collected from the debtors.
"In view of the above, ZACCI is of the strong view that the proposed tariff hikes are unjustifiable. We urge ERB not to grant the increases prayed for," he said.
Jack Kanyanga, a domestic consumer, said he would be comfortable with a hike of up to 25 per cent instead of the proposed ones.
Mr Kanyanga said that Zesco management should publicise information about its performance, capacities and challenges for the people to appreciate its status.
Zambia Association of Manufacturers (ZAM) vice-president, Naresh Gohill said the manufacturing sector was disadvantaged for some time now and the tariff increase would cause it to completely collapse.
Mr Gohill said the hikes should be proportional to the inflation rate in Zambia and wondered why the mining sector seemed to be favoured, as well as why proposed tariffs for that sector had not been publicised.
Sable Transport, agricultural division representative, Bruce Landless said that in its proposals, Zesco seemed to favour domestic consumers as opposed to the commercial ones.
Mr Landless said ERB and Zesco should re-look at the proposals and consider the need for consistency, simplicity and other points raised.
Another domestic consumer, Helen Samatebele, however, differed with Mr Landless on the perceived favouring of domestic consumers, saying Zesco, in fact seemed to be biased against individual users.
Former Transport and Communication minister, Andrew Kashita, said that Zesco had for a long time made no real investment in the renovation and upgrading of the system.
Responding to the views of the consumers, Mr Sisala appealed to the people to support the proposed hike, which he said was inevitable if the corporation was to cope with the situation.
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