The Energy Regulations Board ERB has approved the emergency tariff adjustment proposal for residential and some commercial customers by ZESCO, which was presented for the second time after the Board rejected it last month.

ERB Board Chairperson James Banda explained that the ERB has approved the proposal as it seeks to reduce the cost for low income households and some commercial users especially small businesses who will now be able to afford the utility.

ZANIS reports that Mr. Banda added that the proposal has been approved due to the proposed impact on load shedding as the adjustments will enable the utility company to import more electricity and thereby reduce the load shedding hours as they could not afford to do so owing to the current financial constraints the company is facing.

The Board Chair has however highlighted that the approval is on condition that the utility company meets agreed conditions including; application of the tariff only for three months between 1st November and 31st January 2025 when the Board will review and that the company will continue to explore alternative sources of power generations and prioritize local power purchase, provided it is cost effective. 

Other conditions set by the board are that the company follows the set load shedding schedule, heighten public sensitization on energy saving measures and provide weekly updates to the ERB showing that income generated from the emergency tariff adjustment is used strictly for the importation of electricity.

The Board has further asked the utility company to show implementation of the ERB set key performance indicators within 30 days and has warned of enforcement of sanctions should the company fail to adhere to the conditions set.