Zambia mulls 156% electricity tariff hike

Zambia’s Energy Regulation Board is evaluating a proposal from Zesco Ltd., the state-owned power utility, to raise electricity tariffs by up to 156 per cent.

This emergency measure aims to generate $14 million to mitigate financial losses caused by a severe drought impacting hydropower generation.

The drought, intensified by El Nino, has led to critically low water levels at key dams, including Kariba, which is expected to exhaust its water allocation by the end of September.

The proposed tariff increase is likely to exacerbate inflation, which was already at 15.4 per cent in July.

In response to the power shortage, copper mines, critical to Zambia’s economy as Africa’s second-largest copper producer, are seeking imported electricity to alleviate the impact of reduced local power supplies.

Attribution: Bloomberg

Subediting: M. S. Salama