No decision made yet on ZESCO tariffs

By Mwila Nsofu

ZESCO has clarified that there is no decision made yet on the adjustment of electricity tariffs.

The power utility company says it awaits the 2024 tariff determination by the Energy Regulation Board -ERB- hopefully by May 2024.

It says although ZESCO was awarded a Multi Year tariff adjustment from 2023-2027, the 2024- 2027 tariffs were conditionally pre- approved by the ERB.

This is subject to ERB’s annual True up review of the performance of the 2023 tariffs and ZESCO’s performance on the agreed Performance indicators.

The Key performance indicators include Energy Sales against projected, Revenue Sales, Cost of Sales, Operations and maintenance and Capital expenditure.

The Utility company says three scenarios are expected from ERB’s true Up review on the tariff decision and may include maintaining the pre-approved tariff across the customer categories on account of optimal performance.

The Second Scenario involves increasing the pre – approved tariffs on account of uncontrollable costs which the utility may have incurred during the period under review while the third may lead to  a reduction in the pre-approved tariffs on account of unplanned revenue gains.

Tariff adjustments by ZESCO are independently determined by the Energy Regulation Board, according to the Multi Year Tariff Framework.

 

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