Wednesday, April 24, 2013

Kitwe reject Zesco''s bid to increase tariffs



RESIDENTS of Kitwe rejected the application to revise electricity tariffs by an average 26 per cent across all customer categories.
Livingstone has already rejected this proposal.

Residents failed to understand why Zesco should hike tariffs amid increased load-shedding.
They overwhelmingly submitted that the utility firm didn’t have justifiable reasons to hike tariffs.

This was during the Energy Regulation Board (ERB) organised public hearing held at Kitwe’s Hotel Edinburgh aimed at affording members of the public who made written submissions to ERB, address the
regulatory Board on their submissions.

Lucky Sichula, in his submissions asked ZESCO to ask themselves why they faced resistance each time they made an application for tariff increase.

“Just see the negative comments on the social networks because of unplanned ZESCO load-shedding which have now become like meals as they are experienced in the morning, afternoon and evening
during meal times,” he said.

Mr Sichula said the reason given by ZESCO that the proposed tariff hike was aimed at raising funds for infrastructure development and also reducing load shedding did not hold water because the same reason had been given in all the previous applications but with nothing to show for.

Major Anthony Nyengele in his submissions made reference to the increased load shedding in the country which he said had made ZESCO look like it had no management team in place.

Maj Nyengele who said increased tariffs if granted would further disadvantage people from accessing electricity and caused laughter when he pointed at ZESCO Board chairperson Frank Bwalya who
was present during the submissions said that he now was in a perfect position to speak for the poor.

“Fr Bwalya is a priest and said he was going to speak for the poor and it appears for a reason God has put him in that position to speak for the poor,” Majo Nyengele said amid laughter from the gathering.

And Chulwa Mbewe said he was against the proposed tariff adjustment because it appeared it was aimed at subsidising ZESCO’s employees who were being given 200 units on top of the hefty salaries.

But Managing Director Cyprian Chitundu said the increased economic boom being witnessed in all sectors of the economy had necessitated the programme of infrastructure development, which
required huge sums of money.

He said unless ZESCO was allowed to hike the tariff, the utility would find it difficult to implement the standing projects for new hydro power generation, distribution and transmission lines.

Earlier, ERB Board Chairperson George Chabwera said in his view, the electricity sector was in a sense of paradox considering that Zambia, which had 43 per cent of SADC water resources enough to produce up to 18, 000 mega watts of electricity, was presently producing below 2000 mega watts.

“Access to electricity in urban areas is a mere 22 per cent and in the rural areas three per cent. We are asked to consider a tariff adjustment to enable increased and sustainable power supply.

“We should also be aware that a number of urban consumers have given up on electricity use claiming it is not affordable. In the countryside, electricity consumption is by and large perceived as a product
for higher income earners and yet most of our rural dwellers have an income once a year,” he said.

The challenge now, Dr Chabwera said, was to harmonise this contradictory predicament.

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