A RECAP OF THE YEAR 2017 FOR THE ERB
By RAYA MULEVU
IT may surprise many readers that our Let’s Talk Energy column shall soon be clocking one year since it first featured in the Daily Nation newspaper. In February 2018 the column would have been published once weekly for one year in the country’s widest circulating tabloid. Indeed it’s safe to say, time flies fast!
Without doubt, the column has been a platform for highlighting some of the major developments in the energy sector. Over the past one year, the Energy Regulation Board (ERB) was involved in many activities that would pass for key developments in the energy industry in Zambia.
A cursory look at the column since inception shows an introduction of the newspaper column through which the tone for the column was set in February 2017. Thus, readers were warmly welcomed to the ERB weekly column – “Let’s Talk Energy,” which would be a platform through which it highlighted a number of energy issues.
Being the first time ERB was running a column in about five years, it was refreshing to have guaranteed space to highlight the energy sector on a weekly basis in a nationally circulating publication. We are thankful to the Daily Nation for continuing to accord us space to highlight developments in what is perhaps one of the most important sectors of the national economy – energy! This gesture has helped the ERB to engage more with consumers and offered a great deal of sensitisation to our readers.
Throughout 2017, the ERB through the “Let’s talk Energy” column was able to sensitise many consumers on its role and major functions to ensure efficient provision of reliable and quality energy services and products.
As we have started a new year and continue to work with media institutions such as this one, let us take a trip down memory lane as we look at some of the highlights of this column in 2017.
In March 2017, ZESCO Limited applied to the ERB to revise electricity tariffs by 50 percent and 25 percent in 2017, respectively. The ERB called for public comments on the proposed tariff adjustment in line with the Electricity Act Cap 433 of the Laws of Zambia and 36 submissions were received from various parts of the country.
A Public Hearing was then held on Friday 5th May 2017 at Mulungushi International Conference Centre in Lusaka where those who had made written submissions were given an opportunity to present their views. Though the hearing was open to the public, only those who had submitted written comments as well as ZESCO management had the platform to address the ERB on the tariff application.
Following the hearing, the ERB made a decision to approve an upward tariff adjustment ef- fected in two phases of 50 percent on 15th May 2017 and 25 percent on 1st September 2017, respectively.
In April 2017, the Minister of Energy, Mr David Mabumba launched the long awaited Cost of Service Study where he announced that “The Government of the Republic of Zambia, through the Energy Regulation Board, has embarked on this study in order to establish the economic tariff levels for the electricity value chain and develop a predictable path to guide our quest for attaining and maintaining cost reflective tariffs.”
He indicated that the new study would therefore not only seek to capture developments that had taken place since 2006 when the last similar study was undertaken, but also be forward looking and take into account the forecast on electricity demand in Zambia in the longterm. The study would also explore the future expansion of the power supply infrastructure to meet the forecast future demand in the least-cost manner.
He observed that Government through the ERB had accessed financial support from the African Development Bank (AfDB) to undertake the Cost of Service Study, whose final results will be ready this year.
In April 2017, the ERB, led by the Executive Director Ms. Langiwe Lungu held the 26th Petroleum Industry meeting whose purpose was to inform energy stakeholders about the then recent developments in the sector. The meeting accorded licensees and other key stakeholders a forum through which matters affecting the sector could be deliberated upon and mitigation measures adopted.
The meeting also accorded the ERB an opportunity to familiarise itself with challenges that licensees and other stakeholders were facing in the sector as well as get stakeholder feedback on the recently developed regulatory framework.
In June 2017, the ERB celebrated its 20th anniversary, having been instituted in 2007. The celebrations were graced by the acting Energy Minister, who was represented by Mines Minister Christopher Yaluma, former ERB Board members and ERB former Executive Directors. Several activities to showcase the regulator’s existence in the sector were undertaken in Kitwe, Livingstone, Chinsali and Lusaka during a week dedicated to the commemoration.
Among other key activities was the launch of the ERB Service Charter detailing the regulator’s service level commitment to the stakeholders in the energy sector, by Mr Yaluma. The Service Charter is a benchmark upon which our stakeholders can hold ERB accountable for efficient and effective time bound service delivery.
In August 2017, fuel prices were adjusted in line with the Cost-Plus model currently being used to set fuel prices. This was done after the ERB reviewed the wholesale and retail fuel prices based on the import costs of petroleum feedstock and finished petroleum products.
Furthermore, the decision to review prices was in line with the policy guidance that fuel price adjustments be done periodically in line with the fundamentals, which triggered an upward adjustment of fuel prices by 4.55 percent to 7.93 percent on all petroleum products.
Further, in October 2017, ERB held a meeting with licensees in the Electricity Supply Industry (ESI) to provide a platform for players in the sector to discuss issues of interest impacting the sub sector.
The ERB observed that meetings convened with energy stakeholders had become an important channel for direct interaction between the regulator and players in the sector.
It was noted that such gatherings created an opportunity between the regulator and service providers to discuss critical issues in the subsector.
The ERB highlighted some of the key prevailing issues in the sector which included introduction of the Low Power Factor Surcharge (LPFS), Renewable Energy Procurement Plan and the Cost of Service Study.
Other issues highlighted included Net Metering and Integration of Renewable Energy Sources to the National Grid. Thus, provisions for net metering had been put in place and the ERB was developing an implementation programme with various licensees.
In November 2017, The Regional Electricity Regulators Association of Southern Africa (RERA) conference and annual general meeting was hosted by the ERB in Livingstone.
RERA is a formal association of independent electricity regulators whose establishment was approved by the Southern African Development Community (SADC) Ministers responsible for Energy in Maseru, Lesotho on 12th July 2002.
The association was officially launched in Windhoek, Namibia on 26th September 2002 and provides a platform for effective co-operation between independent electricity regulators within the SADC region.
During the RERA events a Forum for Commissioners and Board Members which has been a feature of the annual events since 2012, preceded the annual conference and general meeting.
The forum opened participants to new ideas and perspectives by tapping into the experience and expertise of the members. Restricted to commissioners and board members, the forum enabled participants to openly engage their peers on subjects that help them to be better regulators.
The purpose of the forum was to widen participants’ knowledge on selected aspects of electricity regulation. The participants indicated that they appreciated how similar their goals were to those of neighbouring countries, and how common the hurdles that hindered their work were. For both new and old commissioners/board members, the forum was a rare learning opportunity.
The ERB engaged other regulatory bodies and partners to conduct another important activity. And so in December 2017, The ERB accompanied by Chief Executive Directors of the former Zambia Weights and Measures Agency (ZWMA), now Zambia Metrology Agency, Zambia Bureau of Standards and Road Transport and Safety Agency (RTSA) conducted a random joint tanker inspection at Katuba Toll Gate.
This exercise was aimed at checking licence compliance levels as well as tanker road worthiness on both foreign and local tankers. Over 30 local and foreign fuel tankers were inspected with most of them found to be compliant to licence conditions as well as road worthy.
The joint inspection was a befitting close to the 2017 regulatory calendar for a number of reasons. It was a reminder that ERB would not relent in its efforts to ensure compliance to regulatory standards. Further, in a year characterised by close collaboration with regulators in the country and within the region, the joint operation signaled increased collaboration in the coming year.
In the spirit of giving, as the year came to an end, ERB staff made a collective personal donation to the Chinsali General Hospital children’s ward of a TV set and DSTV worth six months subscription.