09 April 2017, Lusaka — The Zambian government has justified the proposal by ZESCO to increase electricity tariffs.
Energy Minister David Mabumba says the power utility company is making loses because its electricity production cost is higher than the revenue being generated from the sale of electricity to its customers.
Mabumba says with the loses ZESCO is making, he does not think the power utility company is in a position to borrow for investment from any bank and be able to pay back the debt
He says the proposal by ZESCO to the Energy Regulation Board (ERB) to adjust electricity tariffs by 75 percent is, therefore, progressive.
And ZESCO Managing Director Victor Mundende has noted the need for the power utility company to make regular electricity adjustments to enable it invest in new power generation, transmission and distribution infrastructure.
Mundende says ZESCO also needs to expand its customer base and increase access to electricity in the Country.