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Zambia’s energy regulator, the Energy Regulation Board (ERB), is considering an application from the state-owned power utility, ZESCO, to increase electricity tariffs by as much as 156 per cent as an emergency measure to cover drought-induced losses.
ZESCO is seeking to raise US$14 million from retail electricity users.
In its application for the increase, ZESCO said it faces losses of around US$51 million monthly to cover the costs of emergency power supplies, including imports and hiring expensive diesel generator sets.
The power utility proposed that the emergency tariffs apply for 9 months.
In a statement issued on 19 August 2024, ERB Public Relations Manager, Namukolo Kasumpa, said that they will hold a public consultation meeting regarding the emergency tariff application on August 21. She said:
<blockquote>
The Energy Regulation Board (ERB), on 12th April 2024, through Gazette Notice and in accordance with Section 18 of the Electricity Act No. 11 of 2019, declared an emergency with respect to ZESCO Limited’s (ZESCO) inability to meet the national electricity demand due to external factors beyond the control of the Utility.
Subsequent to the declaration of emergency, the ERB received an application from ZESCO for the approval of an emergency tariff adjustment for its Residential, Commercial and Maximum Demand customer categories.
The ERB on 16th August 2024, issued a Public Notice and Consultation Paper (PCP) to the public in the interest of best regulatory practice and in keeping with the ERB’s mission to be responsive to stakeholders’ needs.
This has been done to ensure transparency regarding the emergency situation and the efforts to manage the energy crisis.
Specifically, the PCP seeks to solicit input and views from interested and affected parties to achieve a fair balance among the interests of customers (end-users), the licensee (ZESCO) and the public at large. 
The input will be considered and form part of the decision-making process of the Board of Directors of the ERB.
</blockquote>
In its application, ZESCO has proposed maintaining the tariff for domestic consumers using 200 units or less.
To support low-income households and small businesses, the utility also recommended reducing the tariff for consumers in the CI range, which caters to small and medium-sized enterprises (SMEs), during the emergency period.
ZESCO indicated that these measures aim to promote energy efficiency among affected consumers.
A hearing on this matter is scheduled for Wednesday, August 21, 2024, at the Mulungushi Conference Center in Lusaka.
Zambia, like its southern neighbour Zimbabwe, heavily relies on the Kariba Dam—the world’s largest man-made freshwater reservoir—for power generation.
However, a severe drought during the 2023/24 rainy season, regarded as the worst in 40 years, has left water levels in the dam critically low ahead of the rainy season, which typically begins in November and starts replenishing the reservoir by February.
On Monday, August 19, the Zambezi River Authority (ZRA) reported that Kariba’s usable live storage, or the water available for power generation, had dwindled to just 9.46%.
As a result, ZESCO has announced plans to increase rolling blackouts across residential areas to 17 hours per day.
The Zimbabwe Power Company (ZPC) is currently generating only 215 MW from the Kariba South Hydro Power Station, despite an installed capacity of 1,050 MW.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Zambia's power company, ZESCO, wants to raise electricity prices by 156% to cover losses from a drought. They need money to buy fuel for emergency power. The government is discussing this increase with the public. The plan is to keep prices the same for small users but lower them for small businesses. This will help save electricity. The water level at the Kariba Dam is very low due to lack of rain, causing a shortage of power in Zambia. ZESCO needs to increase blackouts to save electricity.

Zambia's Power Utility, ZESCO, Seeks 156% Emergency Electricity Tariff Increase

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has pegged the electricity tariffs in United States dollars.
In a notice to customers, ZETDC said the tariff is payable at the prevailing interbank rate on the date of the purchase. Reads the notice:
<blockquote>
ZETDC would like to advise its valued clients of the domestic prepaid cost guide that applies to the first purchase of each month.
The tariff is pegged in US$ and is payable at the prevailing interbank rate on the date of the purchase.
Clients can use the following cost guide based on ZERA approved tariff of 1 December 2023. The unit cost is inclusive of the 6% REA Levy.
50.00 Units (kWh) – US$4.24
100.00 Units (kWh) – US$9.01
200.00 Units (kWh) – US$25.97
250.00 Units (kWh) – US$38.16
300.00 Units (kWh) – US$50.35
350.00 Units (kWh) – US$63.60
400.00 Units (kWh) – US$76.85
500.00 Units (kWh) – US$104.41
600.00 Units (kWh) – US$131.97
700.00 Units (kWh) – US$159.53
800.00 Units (kWh) – US$187.09
900.00 Units (kWh) – US$214.65
1000.00 Units (kWh) – US$242.21
Units costs (exclusive of the 6% REAL levy) are as follows:
0-50 kWh cost US$0.08/kWh
51-100 kWh cost US$0.09/kWh
101-200 kWh cost US$0.16/kWh
201-300 kWh cost US$0.23/kWh
301-400 kWh cost US$0.25/kWh
Above 400kWh cost US$0.26/kWh
This notice serves as a cost guide and clients are advised to be guided accordingly.
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More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZESA Pegs Electricity Tariffs In US Dollars

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA Holdings, has announced electricity tariffs effective 29 February 2024.
ZETDC said consumers will get the following on their first purchase (domestic tariff):
50 Units / kWh – $ 64,000.00
100 Units / kWh – $136,000.00
150 Units / kWh – $263,000.00
200 Units / kWh – $ 390,000.00
250 Units / kWh – $572,000.00
300 Units / kWh – $753,000.00
350 Units / kWh – $950,000.00
400 Units / kWh – $1,148,000.00
450 Units / kWh – $1,355,000.00
500 Units / kWh – $1,560,000.00
600 Units / kWh – $1,970,000.00
700 Units / kWh – $2,380,000.00
800 Units / kWh – $2,790,000.00
900 Units / kWh – $3,203,000.00
1000 Units / kWh – $3,615,000.00
<img alt="" class="alignnone wp-image-271817 size-full" decoding="async" height="418" loading="lazy" sizes="(max-width: 590px) 100vw, 590px" src="https://news.pindula.co.zw/wp-content/uploads/2024/03/ZETDC.jpg" srcset="https://news.pindula.co.zw/wp-content/uploads/2024/03/ZETDC.jpg 590w, https://news.pindula.co.zw/wp-content/uploads/2024/03/ZETDC-300x213.jpg 300w" width="590"/>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZESA Electricity Tariffs Effective 29 February 2024

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA Holdings, has announced electricity tariffs effective 25 January 2024.
The new tariff adjustment comes hard on the heels of another tariff review effected by the power utility on 11 January this year.
It comes as the value of the Zimbabwe dollar continues to depreciate against other currencies in the country’s basket of multi-currencies.
ZETDC said consumers will get the following on their first purchase (domestic tariff):
50 Units / kWh – $ 40,000.00
100 Units / kWh – $86,000.00
150 Units / kWh – $165,000.00
200 Units / kWh – $246,000.00
250 Units / kWh – $360,000.00
300 Units / kWh – $474,000.00
350 Units / kWh – $ 599,000.00
400 Units / kWh – $724,000.00
450 Units / kWh – $ 854,000.00
500 Units / kWh – $983,000.00
600 Units / kWh – $ 1,243,000.00
700 Units / kWh – $ 1,503,000.00
800 Units / kWh – $1,763,000.00
900 Units / kWh – $ 2,023,000.00
1000 Units / kWh – $ 2,281,000.00
<img alt="" class="alignnone wp-image-270204 size-full" decoding="async" height="469" loading="lazy" sizes="(max-width: 786px) 100vw, 786px" src="https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC-1.jpg" srcset="https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC-1.jpg 786w, https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC-1-300x179.jpg 300w, https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC-1-768x458.jpg 768w" width="786"/>
The electricity tariffs effective that were effected on 11 January 2024 were as follows:
50 Units / kWh – $35,000.00
100 Units / kWh – $75,000.00
150 Units / kWh – $145,000.00
200 Units / kWh – $215,000.00
250 Units / kWh – $315,000.00
300 Units / kWh – $415,000.00
350 Units / kWh – $525,000.00
400 Units / kWh – $634,000.00
450 Units / kWh – $747,000.00
500 Units / kWh – $861,000.00
600 Units / kWh – $1,088,000.00
700 Units / kWh – $1,315,000.00
800 Units / kWh – $1,542,000.00
900 Units / kWh – $1,769,000.00
1000 Units / kWh – $1,996,000.00
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZESA Electricity Tariffs Effective 25 January 2024

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA Holdings, has announced electricity tariffs effective 11 January 2024.
ZETDC said consumers will get the following on their first purchase (domestic tariff):
50 Units / kWh – $35,000.00
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100 Units / kWh – $75,000.00
150 Units / kWh – $145,000.00
200 Units / kWh – $215,000.00
250 Units / kWh – $315,000.00
300 Units / kWh – $415,000.00
350 Units / kWh – $525,000.00
400 Units / kWh – $634,000.00
450 Units / kWh – $747,000.00
500 Units / kWh – $861,000.00
600 Units / kWh – $1,088,000.00
700 Units / kWh – $1,315,000.00
800 Units / kWh – $1,542,000.00
900 Units / kWh – $1,769,000.00
1000 Units / kWh – $1,996,000.00
<img alt="" class="alignnone wp-image-269538 size-full" decoding="async" height="425" loading="lazy" sizes="(max-width: 606px) 100vw, 606px" src="https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC.jpg" srcset="https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC.jpg 606w, https://news.pindula.co.zw/wp-content/uploads/2024/01/ZETDC-300x210.jpg 300w" width="606"/>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>
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ZESA Announces Electricity Tariffs Effective 11 January 2024

The Zimbabwe Mining and Smelting Company (ZIMASCO), the country’s biggest producer of ferrochrome, has temporarily suspended operations as a result of the high cost of electricity and the decline in prices on the international market.
Ferrochrome is an alloy (a metal made by combining two or more metallic elements) known for its high corrosion resistance, hardness, and high melting point commonly used in the production of stainless steel.
Speaking in a recent interview with <a href="https://businesstimes.co.zw/zimasco-shuts-down-operations/">Business Times</a>, Namatai Mapfumo, ZIMASCO’s chief operations officer, confirmed the development. She said:
<blockquote>
Current market dynamics, where global ferrochrome markets have taken a downturn, coupled with the recent increased cost of power, means it makes sense for us to temporarily halt production from our older less efficient furnaces and take the opportunity to carry out essential maintenance on them while negotiations continue towards a more favourable power tariff.
In the meantime, we are running our two upgraded furnaces that came online earlier this year, which are more power efficient and environmentally friendly in line with our continued thrust to move towards our ESG goals.
</blockquote>
Despite suspending operations, the company will continue with the expansion project of constructing two modern fully closed furnaces. Said Mapfumo:
<blockquote>
Furthermore, and in line with our long-term strategy of continued responsible value addition, our expansion project of the construction of two modern fully closed 19.8MVA furnaces remains on course with the first new furnace expected to be completed at the end of next month, while the second furnace should be completed at the end of January 2024.
However, given the current power cost, coupled with a depressed global market, the switching on and commissioning of these furnaces is subject to finalisation of the ongoing power tariff negotiations.
</blockquote>
Recently, the Zimbabwe Energy Regulatory Authority (ZERA) awarded a US$0.02 per kilowatt hour tariff increase to the Zimbabwe Electricity Transmission Distribution Company (ZETDC), a subsidiary of ZESA Holdings.
However, early this month, ZETDC acting managing director Abel Gurupira the company wants another tariff hike to recoup losses and supply more stable electricity to consumers.
Before the recent tariff increase, ZESA was charging US$0.10 per kilowatt-hour, leaving it operating from a loss-making position.
The average price per kilowatt hour for electricity in the region is US$0.1254, and ZESA is now charging US$0.12.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZIMASCO Suspends Operations; Cites High Electricity Tariffs, Depressed Global Prices

ZESA Holdings is mulling more tariff increases, saying it lost US$3.7 billion over the years because of below-cost tariffs.
The power utility was recently awarded a US$0.002 per kilowatt hour tariff increase by the Zimbabwe Energy Regulatory Authority (ZERA).
ZESA’s power distribution arm, the Zimbabwe Electricity Transmission Distribution Company (ZETDC), then increased the tariff from US$0.10 per kilowatt-hour to US$0.12, which is still slightly below the regional average of US$0.1254.
Speaking during the State of the Mining Industry report breakfast seminar held in Bulawayo last week, ZETDC acting managing director Abel Gurupira said the power utility requires US$2.8 billion to revamp Hwange Power Station units 1 to 6. <a href="https://www.newsday.co.zw/business/article/200019170/more-zesa-tariff-increases-loom">NewsDay</a> quoted Gurupira as saying:
<blockquote>
We are looking at US$2.8 billion that we need for rehabilitation and repowering, maintenance and the construction of Hwange Units 1 to 6. Unfortunately, the country has ceased to be credit-worthy.
Who will want to invest when you cannot recoup? We have lost almost US$3.7 billion because of below-cost tariffs.
</blockquote>
Zimbabwe is currently experiencing heightened load shedding as Hwange’s Unit 7 is undergoing its 30 days mandatory maintenance process which would be followed by Unit 8.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"ZESA Lost US$3.7 Billion Due To Low Tariffs"

Power utility, ZESA Holdings, is pushing for another tariff hike to recoup losses and supply more stable electricity to consumers, reported <a href="https://www.newsday.co.zw/business/article/200019170/more-zesa-tariff-increases-loom">NewsDay</a>.
Recently, the Zimbabwe Energy Regulatory Authority (ZERA) awarded a US$0.02 per kilowatt hour tariff increase to the Zimbabwe Electricity Transmission Distribution Company (ZETDC), a subsidiary of ZESA Holdings.
Before the recent tariff increase, ZESA was charging US$0.10 per kilowatt-hour, leaving it operating from a loss-making position.
The average price per kilowatt hour for electricity in the region is US$0.1254, and ZESA is now charging US$0.12.
Speaking during the State of the Mining Industry report breakfast seminar held in Bulawayo last week, ZETDC acting managing director Abel Gurupira said:
<blockquote>
We are a regulated authority even with the tariff that we were awarded, let me say we are not yet there. We are almost 79%.
The tariff has been so suppressed; this leads to difficulties in the recapitalisation of ZESA. We have aged machinery.
We saw it fitting that we structure everything. We have been driving this vehicle since the 1930s or 1940s.
We need a mindset shift to say ZESA is government so everything from the government must be cheap.
This business of the vehicle will collapse then we will realise that what is better is to have the right price with stable electricity or to have erratic delivery of electricity at a cheap price.
</blockquote>
He said there were initiatives by SADC countries to tap into the more than 2 000 megawatts (MW) of power lying idle in Angola due to transmission challenges.
Gurupira added that Zimbabwe will require 2 000MW in the next two to five years.
Currently, the Zimbabwe Power Company, a ZESA subsidiary, is generating just above 1 000MW of power.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZESA Wants To Hike Electricity Tariff, Again

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA Holdings, has announced electricity tariffs effective 31 October 2023.
ZETDC said consumers will get the following on their first purchase (domestic tariff):
50 Units / kWh – $19,650.00
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100 Units / kWh – $42,300.00
150 Units / kWh – $81,550.00
200 Units / kWh – $120,850.00
250 Units / kWh – $175,200.00
300 Units / kWh – $229,500.00
350 Units / kWh – $289,950.00
400 Units / kWh – $350,400.00
450 Units / kWh – $413,800.00
500 Units / kWh – $477,200.00
600 Units / kWh – $604,100.00
700 Units / kWh – $731,000.00
800 Units / kWh – $857,900.00
900 Units / kWh – $984,700.00
1000 Units / kWh – $1,111,500.00
The Zimbabwe Energy Regulatory Authority (ZERA) recently approved a new electricity tariff adjustment for ZETDC.
ZETDC applied for the approval for an adjustment of USc2/kWh and stagger the tariff to a level of cost reflectivity.
Prior to the application, ZETDC had been charging an average tariff of USc10.63/kWh approved in October 2019 and maintained the value of that tariff through indexation.
The new tariff adjustment of USc2/kWh was implemented on 24 October 2023.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>
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ZESA Hikes Electricity Tariffs Effective 31 October 2023

PUBLIC NOTICE ON ZETDC APPLICATION FOR ELECTRICITY TARIFF REVIEW FOR 2023
(Section 53 (10) of the Electricity Act (Chapter 13:19))
The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), in compliance with section 53 of the Electricity Act (Chapter 13:19) of 2002, has submitted to the Zimbabwe Energy Regulatory Authority (ZERA), an application for a review of electricity tariffs for 2023.
1. Reasons for seeking electricity tariff review:
a. To enable the utility to raise the revenue required for service provision in 2023.
b. To cover costs for Purchase of Electricity, Operations and Maintenance, Regulatory costs, Research and development costs and General Admin.
c. To take into consideration adjustment for under-recovery in the previous year.
d. To create capacity to be able to support economic growth in the Mining, Agriculture, Industrial and Tourism sectors.
2. Magnitude of the tariff adjustment being applied for:
The magnitude of the tariff adjustment being applied for in the interim is an increase of USc2/kWh on the existing tariff.
3. The projects to be funded include:
a. Rehabilitation and maintenance of the transmission and distribution network
b. Servicing of the loan for Hwange 7 &amp; 8
c. Repowering of Hwange 1-6
d. Procurement of operational vehicles
e. Procurement of critical spares, tools and equipment.
f. Kariba Unit 4 runner replacement
4. The expected impact of tariff adjustment on the economy:
a. Improved power supply availability and reliability
b. Increased economic productivity
c. Increased capacity utilisation
d. Attraction of investment into the energy sector through IPPs
e. Improved response time to attend faults
f. Improved security of electricity infrastructure
g. Reduction in electrical accidents
h. Improved service delivery
i. Attainment of NDS1 and NDS2 targets and ultimately realisation of Vision 2030
5. Internal measures undertaken to improve efficiency, revenue collection and system losses:
a. Completion of prepaid metering programme.
b.Installation of smart meters and migration of medium and large power users to prepayment.
c. Completion of statistical metering to enable load balancing.
d. Automation of manual processes to improve efficiency.
e. Network reinforcement and rehabilitation.
f. A State-of-the-Art National Contact Centre to improve customer service delivery and reaction time to faults.
g. Decommissioning and repurposing of the Small Thermals.
h. Conclusion of the construction of transmission lines and substations for purposes of evacuating power (600 MW) from Hwange 7 &amp; 8 projects.
i. Implemented cost containment measures and that will continue to be maintained in 2023.
Customers or customer groups wishing to make submissions on ZETDC’s tariff review proposal may do so in writing to the Zimbabwe Energy Regulatory Authority (ZERA) Chief Executive Officer not later than 12 October 2023.
The submissions should be made to the following:
Email: admin@zera.co.zw
Landline: +263-242-780010/253461
Fax: +263-242-250696
14th Floor Century Towers; 
45 Samora Machel Avenue; 
HARARE.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Public Notice On ZETDC Application For Electricity Tariff Increase | Full Txt

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has applied for an increase of electricity tariffs for 2023 by US2 cents/kWh.
According to <a href="https://www.sundaymail.co.zw/zetdc-seeks-tariff-increase-to-boost-power-supply">The Sunday Mail</a>, the electricity tariff of US2 cents/kWh translates to about $147 in Zimbabwe dollars.
ZETDC, a subsidiary of State-owned power utility ZESA Holdings, says the tariff increase will fund projects that include rehabilitation and maintenance of the transmission and distribution network, and service loans, and refurbishment of old units at Hwange Thermal Power Station. Reads the notice in part:
<blockquote>
The Zimbabwe Electricity Transmission and Distribution Company, in compliance with section 53 of the Electricity Act (Chapter 13:19) of 2002, has submitted to the Zimbabwe Energy Regulatory Authority (ZERA), an application for review of electricity tariffs for 2023.
Reasons for seeking electricity tariff review: to enable the utility to raise the revenue required for service provision in 2023, to cover costs for Purchase of Electricity, Operations and Maintenance, Regulatory costs, Research and development costs and General Admin to take into consideration adjustment for under-recovery in the previous year.
To create capacity to be able to support economic growth in the Mining, Agriculture, Industrial and Tourism sectors. The magnitude of the tariff adjustment being applied for in the interim is an increase of USc2/kWh on the existing tariff.
</blockquote>
ZETDC has one of the region’s lowest electricity tariffs in the Southern African region.
The Sunday Mail reported that in South Africa, the tariff is US11,2 cents/KWh, while Namibia charges US16 cents/KWh.
Mozambique’s tariff is US12,4 cents/kWh, with Madagascar setting the tariff at US15,3 cents/kWh. In Mauritius, it is US14 cents/kWh, while it is US12,6 cents/kWh in Malawi.
In Eswatini, it is US14 cents/kWh, while it is US11 cents/kWh in Botswana, US7,4 cents/kWh in Zambia, US10,54 cents/kWh in Tanzania and Seychelles charges US27 cents/kWh.
ZETDC is reportedly buying electricity at a tariff of US12 cents/kWh and, in turn, selling to the consumer at an average tariff of US10 cents/kWh.
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ZESA Applies For Electricity Tariff Increase

ZESA Holdings has defended the approval of a 50% increase in the electricity tariff to US$0.1221/kWh from US$0.08/kWh saying it was meant to ensure an uninterrupted supply to miners and industry.
Mining companies say the hike threatens the attainment of the US$12 billion mining industry.
However, Howard Choga, the managing director of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA, said for the past twenty years, the power utility had been operating below cost. Choga said:
<blockquote>
Electricity supply challenges are sitting on top of the challenges that the miners are facing.
The mining industry believes that electricity charges are very expensive; they want them to be lowered from the current US$0.1221/kWh to US$0.1026/kWh.
But the challenge is for us to find what is needed to correct the anomaly.
What I can tell you is that we are behind in terms of refurbishment and rehabilitation of the network to the tune of about US$2bn.
This is actually occasioned by the fact that for the past 20 years we have been operating below cost.
… let’s accept the tariff for us to have a better future in Zimbabwe and achieve our targets.
</blockquote>
According to Business Times, this year’s demand was 1850MW against the supply of 1400MW, with imports from Zambia, South Africa, and Mozambique augmenting local supplies. | <a href="https://businesstimes.co.zw/govt-justifies-exorbitant-power-tariff/">Business Times</a>

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