Zambia electricity emergency continues
On 31 January 2025 the Zamibian Energy Regulation Board (ERB) determined that the neighbouring country’s electricity emergency still exists, and resolved to maintain and extend the approved 2024 ZESCO emergency tariffs for a further period of three months, from 1 February to 30 April 2025.
ZESCO, the state-owned power company, was already granted the tariff increase from 12 April 2024, due to its inability to meet national electricity demand. Reduced water levels in major water reservoirs, arising from the prolonged drought situation over Southern Africa, hamper ZESCO generation capacity. The ERB initially approved ZESCO’s application for an emergency period tariff and directed that the emergency tariffs should be effective for three months from 1 November 2024 to 31 January.
Tariffs applicable for residential, commercial and maximum demand customers for the extended emergency period remain at the rates approved in October 2024. The ERB said it has observed that the factors that led to the declaration of the emergency still exist, and ZESCO’s power deficit is still over 1 000 MW.
“Furthermore, due to the low water levels in the major reservoirs, ZESCO has not been able to ramp up generation at most of its hydro plants. As such, the utility still requires additional revenue to meet the cost of power imports,” the board’s statement reads.
Despite the increase in the electricity tariffs, ZESCO did not raise the target revenue of US$15 million monthly, having reported US$2.4 million and US$7.6 million in November and December 2024, respectively, according to the ERB.
“The Utility did not meet the target revenue because it did not sell the desired quantum of energy of 474 GWh monthly,” the board elaborated. Contributing factors include a time lag between meter reading and billing for postpaid customers. Also bulk purchase of prepaid units by customers prior to the implementation of the emergency tariffs played a part. ZESCO stated that a number of prepaid customers bought units in bulk prior to 1 November 2024, in order to avoid the emergency tariffs, according to the ERB.
The ERB directs ZESCO to provide regular weekly updates regarding the available generation from its plants and that of the Independent Power Producers (IPPs) as well as available imports. ZESCO should also report on actual energy imports from Eskom, EDM, ZPC and any other sources, and any technical challenges including transmission bottlenecks, as soon as they arise. Further ZESCO must publish and adhere to a load management schedule, and must inform the ERB and the public immediately, if it cannot stick to the schedule. The ERB also calls for heightened consumer engagement and that ZESCO should continue to improve its operational and commercial performance.
ZESCO, the state-owned power company, was already granted the tariff increase from 12 April 2024, due to its inability to meet national electricity demand. Reduced water levels in major water reservoirs, arising from the prolonged drought situation over Southern Africa, hamper ZESCO generation capacity. The ERB initially approved ZESCO’s application for an emergency period tariff and directed that the emergency tariffs should be effective for three months from 1 November 2024 to 31 January.
Tariffs applicable for residential, commercial and maximum demand customers for the extended emergency period remain at the rates approved in October 2024. The ERB said it has observed that the factors that led to the declaration of the emergency still exist, and ZESCO’s power deficit is still over 1 000 MW.
“Furthermore, due to the low water levels in the major reservoirs, ZESCO has not been able to ramp up generation at most of its hydro plants. As such, the utility still requires additional revenue to meet the cost of power imports,” the board’s statement reads.
Despite the increase in the electricity tariffs, ZESCO did not raise the target revenue of US$15 million monthly, having reported US$2.4 million and US$7.6 million in November and December 2024, respectively, according to the ERB.
“The Utility did not meet the target revenue because it did not sell the desired quantum of energy of 474 GWh monthly,” the board elaborated. Contributing factors include a time lag between meter reading and billing for postpaid customers. Also bulk purchase of prepaid units by customers prior to the implementation of the emergency tariffs played a part. ZESCO stated that a number of prepaid customers bought units in bulk prior to 1 November 2024, in order to avoid the emergency tariffs, according to the ERB.
The ERB directs ZESCO to provide regular weekly updates regarding the available generation from its plants and that of the Independent Power Producers (IPPs) as well as available imports. ZESCO should also report on actual energy imports from Eskom, EDM, ZPC and any other sources, and any technical challenges including transmission bottlenecks, as soon as they arise. Further ZESCO must publish and adhere to a load management schedule, and must inform the ERB and the public immediately, if it cannot stick to the schedule. The ERB also calls for heightened consumer engagement and that ZESCO should continue to improve its operational and commercial performance.
