Maravi

Kitwe residents reject Zesco’s proposed tariff hike

Kitwe residents reject Zesco’s proposed tariff hike
Written by Correspondent
Thursday, June 18, 2009 10:52:31 PM

KITWE residents have rejected the proposed 66 per cent electricity tariff hike, describing it untimely and unreasonable. But Zesco Limited director for Customer Services Teddie Mwale has said the intentions to increase tariffs was not to exploit the consumers, but was aimed at making the power sector grow and effectively support economic development.

During an Energy Regulation Board (ERB) organised public hearing on the intentions by Zesco to increase tariffs in Kitwe, Riverside ward councilor Christopher Kang'ombe said Zambians should not be overcharged through electricity tariffs to finance Zesco’s projects.

“It does not mean that if Zesco wants money for maintenance and increased generation capacity, it must overcharge the poor Zambians to finance such huge capital projects. The residents are proposing that instead of Zesco charging high tariffs for purposes of financing their projects, government or Zesco must consider applying for a loan to assist in meeting the various challenges it is facing,” Kang’ombe said. “Furthermore, we feel the amount of money going towards emoluments, allowances and salaries to Zesco employees is enormous and management should review the figures to allow the company save more resources. The submissions we are making here are serious and so Zambians should not be subjected to making these submissions and then ERB proceed to allow Zesco to increase tariffs to 66 per cent.”

And Kang'ombe who spoke on behalf of the Kitwe consumers said Copperbelt had witnessed a lot of job losses in the excess of 10,000 to date and therefore, the suggested 66 per cent was not only untimely, but also unreasonable given the prevailing hardships.

In his submissions to the ERB sitting, Kang’ombe wondered why Zesco should demand more than 16 per cent that it promised to adjust its tariffs when under the multi-year tariff framework adopted by ERB, the electricity utility company was granted increases of 27 per cent (2008), 16 per cent (2009) and 11 per cent (2010).

Meanwhile, Mwale said his company was not interested in exploiting the customers, but wanted to improve service delivery and create a strong customer base.

He said his company played a vital role in the privatization of the mines because of its low tariffs and that it was imperative that it increased its tariffs to effectively cater for the investment and development that the investors had brought in the country.

Labels: ERB, KITWE, TARIFFS, ZESCO

posted by MrK @ 9:52 PM