Maravi

Zesco’s tax review is imminent, reveals ERB

Zesco’s tax review is imminent, reveals ERB
By Mutale Kapekele
Tue 13 Apr. 2010, 04:50 CAT

ZESCO’s application for the review of electricity tariffs is expected soon, the Energy Regulation Board (ERB) has disclosed.

According to a presentation paper from the ERB to the Zambia National Farmers Union corporate and agribusiness members who were discussing the outlook for electricity and fuel supply and pricing in 2010, the board stated that electricity tariff review was imminent.

"In the immediate future, it is imminent that the demand for power is on the upswing again after the revival of investments into the mines driven by booming copper prices," the ERB stated. "In terms of pricing, ZESCO’s application to review tariffs for 2010 has not yet reached ERB but it's expected anytime soon."

The ERB also disclosed that information for the third quarter of 2009 showed that ZESCO had achieved 75 per cent of the Key Performance Indicators but the outcome of the fourth quarter was still being awaited.

On the fuel outlook, the ERB indicated that the government had issued assurances that the shortage of fuel, which has repeatedly occurred in the past when Indeni closed down for yearly maintenance programmes, will not be repeated this year.

"As for fuel price adjustments, ERB advised that the price of fuel is worked out on a cost plus formula per cargo supply of oil which allows for some stability in terms of price changes but has some weaknesses as some inefficiencies are built in," the board stated.

The ZNFU has urged the government to encourage all new mines to invest in new power generation.

Labels: ERB, TAXATION, ZESCO

posted by MrK @ 2:52 PM