Maravi

DRC proposes increase in electricity tariffs to Zesco

DRC proposes increase in electricity tariffs to Zesco
By Chiwoyu Sinyangwe
Tuesday July 29, 2008 [04:00]

DEMOCRATIC Republic of Congo (DRC) power utility Snell has written to Zesco proposing to up electricity tariffs from the current 1.4 US cents per kilowatt per hour to 4 cents. Zesco Limited managing director Rhodnie Sisala who confirmed the development in an interview yesterday however said the landing cost for the power in Zambia to final consumers would be about US 6 cents/kWh.

“Yes. I can confirm that we have instituted a team to negotiate with our counterparts in DRC (Snell) for the proposed increase in tariffs,” Sisala said. “I can’t give much detail on the negotiations but all I can do now is to confirm that our counterparts have proposed to increase the tariffs.”

DRC which has one of the biggest hydropower reserves in Africa is seen by most stakeholders as the immediate alternative source for power as Zambia continues to grapple with power shortages which have culminated in increased load shedding and currently the country imports about 210 megawatts.

And Sisala has explained that the proposed increase in electricity tariffs by Snell means Zesco would be “subsidising” electricity for consumers in the country.

“Essentially, that is what we have kept saying about the tariffs in the country. Right now, the tariffs in this country are around two and half to three and half US cent/kWh, and Zesco would land that power in your home at about US 6 cents/kWh, so, if we are to put in other costs like transporting the power and the equipment involved, it means Zesco would be selling power at a much lower price than is currently importing…So that is the magnitude of the problem.”

Sisala urged people to support calls for increasing of electricity tariffs to cost reflective levels.

“When we say there is need for us to work together with all the stakeholders to ensure we bring the tariffs to the correct level so that it helps us with the ability to sustain and maintain an efficient power system in the country, this is what we mean,” said Sisala.

Labels: DRC, ENERGY

posted by MrK @ 5:28 AM