The Energy Regulation Board (ERB) has approved ZESCO’s application for emergency tariff adjustments, which will affect residential, commercial, and Maximum Demand consumers. The new tariffs will take effect from November 1, 2024, and run through January 31, 2025.
This decision follows ZESCO’s proposal to reduce tariffs for residential categories RI and R2, as well as for commercial customers in category Cl. These reductions are designed to provide relief for low-income households and small and medium enterprises (SMEs), making power more affordable for those groups.
ZESCO has also committed to reducing load shedding hours and plans to publish reliable load shedding schedules to keep consumers informed. The ERB’s decision was based on several considerations, including ZESCO’s financial performance, which revealed that the utility company lacks adequate resources to finance additional power imports.
To address this funding gap, the ERB emphasized the need to support ZESCO in raising the necessary funds for urgent power imports aimed at alleviating the load shedding crisis. In addition, ERB Chairperson James Banda has urged ZESCO to explore alternative revenue sources and financially prudent options for power imports.
The utility company has been directed to prioritize local power purchases, provided these are cost-effective compared to options available through the Southern Africa Power Pool (SAPP) and other sources. ZESCO is also tasked with enhancing public awareness about the emergency power situation and the new tariff structure, alongside promoting energy efficiency measures.
