Government Chief Spokesperson, Chushi Kasanda, has called on stakeholders to invest in electricity generation and supply to help curb power shortages in the country.
Ms Kasanda, who is also the Minister of Information and Media, explained that the Southern African Development Community (SADC) region is facing an energy crisis which in the medium to long term may increase and affect Zambia due to the planned increase in copper production.
She said the financial status of ZESCO is not enough to forestall the envisaged power shortages, thus it is imperative to inquire into factors that can persuade private players to venture into electricity generation to come on board.
‘’The price or tariff for electricity is one of the major factors. Although the tariff must be conducive, it must be justifiable on economic grounds and also be sensitive to the needs of the poor,’’ she said in a statement issued to the media.
Ms Kasanda said stakeholders are generally in agreement with the initial government position on the findings of the cost of service study and principles for tariffs setting following consultative meetings held in all the provinces in the country.
The consultative meetings were meant to understand the cost of service study in the energy sector.
Ms Kasanda cited the importance of more investment in increased electricity generation through the various sources to match growth in population as well as demands of growing economy as one of the principles agreed upon by the stakeholders.
“Currently, the electricity sector is not very attractive to investors due to tariffs that do not cost reflective,’’ she noted.
Ms Kasanda further said the stakeholders were also in agreement with the tariff adjustment towards cost reflectivity which will be undertaken gradually over a period of five years beginning in 2023 to minimize their impact on individuals and businesses.
“The adjustment of tariffs will be done in line with the provisions of the Electricity Act No.11 of 2019. This requires a predefined period of public consultations, which would mean that any adjustment in tariffs would only be done by the Energy Regulation board in the second quarter of 2023. The multi-year migration path envisages gradual increases over the subsequent four years,’’ she explained.
