ERB FACILITATES ECONOMIC DRIVE BY OPENING CHINSALI OFFICE
It has been over two years since 1st October 2015, when the Energy Regulation Board (ERB) opened its fourth Office in Chinsali, the provincial capital of Muchinga Province.
In order to fulfil its mandate as stipulated in the Energy Regulation Act of 1995, Chapter 436 of the laws of Zambia, the ERB established offices in Lusaka, Kitwe and most recently in Chinsali.
The opening of the Chinsali office is also in support of Government policy to decentralize services to other parts of the country. The main objective was for the ERB Northern Region Office to facilitate economic activities particularly energy in Muchinga, Northern and Luapula Provinces and ultimately ease stakeholder access to the regulator. It can be argued that ERB Northern Region Office has more than lived up to this objective as evidenced by networks and extensive relations established with licensees and other stakeholders.
Energy regulation calls for the delicate balance of needs for consumers, Government and energy companies. These three stakeholders’ expectations are at the core of ERB’s functions. Consumers have to be protected against high costs of energy products and services including quality standards. Government for its part expects the regulator to be responsible and accountable in overseeing the energy sector, while energy companies expect a conducive business environment which promotes a level playing field and a return on their investment.
Since launching the Northern Region Office, the ERB has made significant contribution to national development as evidenced by the increased number of Oil Marketing Companies (OMC’s) that have set up shop in the area such as Total, Alpha Enterprises and Kess Energy in Chinsali, Luapula Oils in Mansa, LBM in Isoka and Mpulungu, Lake Petroleum, Mount Meru and Eco-Petroleum in Mpika.The total number of licensed service stations had increased from twenty two (22) to twenty-nine (29) at the end of 2017.
This is indicative of enhanced facilitation by the Regulator evidenced by the quick turnover of the licensing and technical processes due to proximity of the ERB office in Chinsali. ERB expects improvements on issues such as provision of compressed air and clean working toilets. In addition, the ERB has also recommended that safety training is enhanced by OMC’s to minimize the impact accidents have as and when they occur.
Further, periodic stakeholder engagement meetings with licensees continue to play a role in ensuring service providers operate within set standards. The grading of service stations has equally been implemented. Due to these interventions, consumers have the choice to buy products from service stations offering the best service.
Illegal fuel vending in Muchinga is a vice that continues to threaten all stakeholders, causing damage to property and the economy to a debilitating effect. ERB relies on collaborative efforts with the Municipality, Zambia Police (ZP) and the Road Transport and Safety Agency (RTSA) in the Region to curb this vice. For example, in 2017, 1200 litres of petroleum products were seized from illegal fuel vendors in Chinsali in a joint operation with Zambia Police (ZP), Zambia Wildlife Authority (ZAWA) and Chinsali Municipal Council.
Lessons learned so far suggest the need for all stakeholders such as Zambia Police and RTSA to counter the proliferation of illegal fuel vending by stopping vehicles carrying dangerous petroleum products on non-licensed motor vehicles contrary to the Petroleum Act Chapter 435 of the Laws of Zambia Part 15, 16 which states as follows:
“15.Dangerous petroleum shall be transported only if it is packed in airtight tins or other vessels not easily broken, or is contained in bottles securely corked and carefully packed so as to avoid risk of breakage.
16. (1) No dangerous petroleum in bulk shall be conveyed by road vehicle to or from any store except in substantial and securely closed vessels of a suitable type, and no goods of an explosive or inflammable character shall be carried in the vehicle at the same time that dangerous petroleum is being so conveyed; such vehicle must be certified by a vehicle examiner as being fit for such transport.
(2) No dangerous petroleum in bulk shall be transported by road except in accordance with a licence issued by the Road Traffic Commissioner:
Provided that motor tank lorries used exclusively for the transport of petroleum may lawfully transport dangerous petroleum if licensed by the Road Traffic Commissioner under this proviso. Such licence shall expire
on the 31st December of the year in which it is issued. A charge of seventy-five fee units shall be made for a licence under this proviso, which sum shall be additional to any licence fee payable under any other written law for the time being in force.”
Appropriate action from stakeholders can curb Illegal Fuel Vending and safeguard the existence of licensed tax paying entities. Licensed entities are currently suffering from the effects of this illicit practice that includes loss of sales revenue. The hazard posed by the storage and handling of petroleum products by unlicensed dealers comes at a great cost. Firstly, human life is under threat by the highly flammable petroleum products and damage to property due to fuel whose quality is not assured and leaves the consumer with no recourse from the ERB.
On the other hand, the Electricity sub-sector in the region equally receives the regulator’s attention through infrastructure audits of energy companies like ZESCO Ltd in the Northern Region. ERB partners with Zambia Environmental Management Agency (ZEMA) when conducting environmental Impact Assessments. Notable challenges against the electricity supplier are tied to a lack of or absence of awareness programmes that address prevalent problems such as low voltage, delayed connections, and delayed reporting of incidents and accidents. The growing demand for electricity vis a vis the limited access has not come without alternative sources of energy. Solar and Liquid Petroleum Gas (LPG) are a safe option. A public outcry to ERB is the need for more energy providers to avail consumers in the Northern Region with Solar and LPG equipment. The availability of alternative sources will encourage the adoption of these clean options of energy and enhance the energy mix.
The eventual expectation is a reduced reliance on Hydro-electricity. The enhanced involvement of licensees in the widening of the energy mix can significantly reduce human activities that cause desertification and global warming.
The Northern Region is beaming with development in the energy sector. The Lufubu Power Project, the Tullow Oil Exploration and the Mansa Petroleum Products Bulk Depot are among the project environmental impact studies the ERB reviewed in 2017.
Furthermore, in its efforts for continued stakeholder engagement, ERB featured at the Muchinga Agricultural, Tourism, Commercial and Investment Show (MATCIS) where it scooped double honors as the Best-Quasi Government Institution and second best Regulatory Authority. Community Engagement Campaigns have been pivotal in the receipt of consumer complaints against energy companies. The ERB Toll Free Line 8484 has also been used by consumer in the region.
Complaints handling is the Regulators Consumer Protection tool ensuring consumers are not unfairly treated or exploited by service providers. The ERB complaints procedure is available on the website www.erb.org. zm. Complaints can be lodged through the Toll Free Line 8484, ERB offices in Lusaka, Livingstone, Kitwe and Chinsali.
Further, ERB partners with other institutions such as the Competition and Consumer Protection Commission (CCPC), Zambia Weights and Measures Agency, Zambia Bureau of Standards, among others.
Community engagement is core to regulation and is implemented through public awareness activities and exhibitions. This interaction with stakeholders has raised awareness on the functions of the ERB and how best consumers and stakeholders can be served. Radio programmes on Muchinga FM, Radio Mano, Mpika FM, Isoka FM and Tuta Radio have been aired to disseminate information on topics such as: Sharing and Capture (KSC) to all stakeholders. ERB staff are part and parcel of the community. This year they saved up to donate a Television Set to the Chinsali General Hospital Children’s ward. ERB Executive Director Ms. Langiwe H. Lungu on handing over the donation, said “that Christmas time is a time of giving and that it was hoped that this would bring cheer to the Children in the ward as they fight to get better.” Acting Medical Superintendent Dr. Lukama was on hand to commend ERB. Dr. Lukama added that the gesture tackled an important part of the healing process. The community and staff of the hospital commended the ERB for their donation and the Regulator’s continued positive contribution to society
All in all, the ERB’s responsibility to its stakeholders is complex, given the ever growing demand for energy in the activities that spur development of our country. The importance of regulation with the growing demand for reliable and quality energy cannot be understated. The imminent increase in population calls for standards to be upheld and consumers engaged. A sustainable energy sector is a linchpin to a growing economy. The Northern Region ERB office endeavors to continue safeguarding the interests of all stakeholders by upholding standards while being responsive to consumer protection and contributing to the 7th National Development Plan themed; “Accelerating development efforts towards vision 2030 without leaving anyone behind”.
The author is Consumer Affairs Officer at ERB’s Chinsali Office. For feedback email:erb@erb.org.zm