POWER TARIFF INCREASE INEVITABLE - MUTAMBO

ADJUSTMENT of electricity tariff is the best way to boost the energy sector and attract investors, says Secretary General of the National Energy Alliance (NEA) Manson Mutambo

Mr Mutambo said the upward adjustment of energy tariffs is the only way Zambia can make the energy sector become lucrative and competitive.

In an interview, he observed that the current low electricity tariffs were a major setback to investors interested in participating in the sector.

He said in as much Government wanted to help cushion the energy cost, the current low tariffs had hugely negatively affected the sector’s performance.

Mr Matambo said the adjustment might look costly to Zambians who are used to getting low tariffs but it is the best way forward for the country.

“The electricity tariff adjustment is the best way to go to help boast and attract investors in the energy sector,” he said.

He said the country’s energy sector was underperforming because the current low domestic and commercial tariffs would attract no investor

He said some investor had already surveyed the sector and resolved that the Zambian energy industry was not a viable business opportunity.

He said procurement of power from neighbouring countries was not the best option for Zambia other than just boosting her own energy sector.

Energy Regulation Board (ERB) chairperson, Raymond Mpundu, on Wednesday said new cost reflective electricity tariffs will be announced in the next few days.

The announcement follows Zesco’s application to increase power tariffs by 113 percent average.

Mr Mpundu said the announcement on the adjustment of power tariffs would be made as soon as possible as they were unavoidable.

And stakeholders had opposed Zesco’s planned power tariffs adjustment which they have described as ‘being beyond the margin’.