Reflections on Cost Reflective Electricity Tariffs in Zambia
THE Energy Regulation Board (ERB) has allowed Zambia Electricity Supply Corporation (ZESCO) to increase electricity tariffs for domestic consumers by 24.63 % effective July, 2014. The increment would also see tariffs for commercial consumers increase by 15.38 %, 19.49 % for small power and 5.11 % for large power while social services would pay 15.38 per cent. Private sector development specialist Yusuf Dodia earlier last week opposed the hike in electricity tariffs arguing that electricity should never be treated in commercial terms as it was a public good hence there is no need to have cost reflective tariffs as government was obliged to provide affordable energy to stabilise the economy and make life bearable for its citizens. I think this needs further debate. My view is that electricity tarrifs in Zambia need upward adjustment in order to make electricity power generation and transmission more sustainable and to attract investment in the sector. However this upwa...