Zesco Fiasco
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TABJ – Jan 25 - Zesco Ltd., Zambia-based Power Company, has announced plans to increase its electricity prices by 17 to 33 per cent in order to raise money for reinvestment in the sector.
Effective as of May this year, a statement from the company read: “the adjustment in electricity tariffs is a vital part of ensuring that electricity supply is secures and national development is sustained.”
A separate agreement with Copperbelt Energy Corporation (CEC) means that mines affected by the previous 30 per cent increase in power costs would not be affected.
To explain the cost increases, Zesco said that the depreciation of Zambia’s kwacha currency over the last three years played a large part.
The price of commodities such as steel, copper and aluminium used in manufacturing machinery and spare parts was also a contributing factor.
The Energy Minister for Zambia believes Zambia’s electricity supply will remain tight until 2015 when he estimates the generation capacity may exceed projected demand.
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