LUSAKA, Nov. 5 (Xinhua) -- Zambia's power utility on Tuesday justified its plans to increase electricity tariffs, saying it was inevitable.
Zesco Limited has applied to the energy regulator, the Energy Regulation Board (ERB) to increase electricity tariffs by an average of 113 percent but the move has received a backlash from stakeholders.
But speaking during a public hearing on the proposed tariff hike called by the energy regulator, Zesco Limited director of transmission Webster Musonda said increasing tariffs will enable the power utility meet its current obligations and implement its capital investment portfolio because of an anticipated increase in revenue.
According to him, the decision to revise the electricity tariffs was due to the prevailing economic conditions, changes in the cost of generating, transmitting, distributing and supplying electricity, among others.
Meanwhile the energy regulator said the migration to cost reflective tariffs in the energy sector was inevitable for the power utility and the economy as they will attract more investment in the sector.
Raymond Mpundu, the regulator's chairperson said the board decided to call for a public hearing because it was a legal requirement and that it also presents an opportunity to enhance transparency in the tariff determination process.
The regulator was expected to decide on the application within this month, he added.
The official said the board will move expeditiously to fully analyze the efficacy of the application as well as balance it with public concerns.
