• The approved residential tariffs for consumption above 100 to 300 kilowatts per hour is K1.05 from 95 ngwee.
• The effects are that the retail and industries will push the cost on the consumers, making it challenging for low income earners to survive.
• It will be difficult to navigate through the 2024-2027 period owing to the country’s inflation rate which is expected to be high.

An Economist says the increase in electricity tariffs at household and commercial levels will translate into high cost of doing business for small and medium enterprises (SMEs) from 2024 to 2027.

Speaking in an interview with Money FM News, Chomba Chomba said the effects are that the retail and industries will push the cost on the consumers, making it challenging for low income earners to survive.

Mr. Chomba stated that it will be difficult to navigate through the 2024-2027 period owing to the country’s inflation rate which is expected to be high during the said period.

“The tariffs have been increase both at household and commercial levels. This means that the cost of doing business for a barberman, saloon, welders, butchery in compounds and industries will be high from 2024 to 2027. The effects are that the retails and industries will push the cost on you and I the consumers of what they produce for us to eat and look good.”

“This also means the cost of surviving or living for you, me & everyone out there will be extremely high coupled with the high fuel cost,” Mr. Chomba noted.

He added that this is can only be mitigated by increasing salaries for workers in an effort to cushion the economic shocks.

“It will be extremely difficult to navigate through this period of 2024-2027 owing to the fact that our inflation rate which is expected to be high during the said period does not get abated with increase salaries in an effort to cushion the shocks it brings of high cost of living,” he added.

Energy Regulation Board (ERB) has approved Zesco’s proposal to migrate to 2024 pre-approved multi-year tariffs for domestic consumers which have been increased by 44 ngwee from 40 ngwee for consumption of up to 100 kilowatts per hour, effective 1^st May, 2024.

In a statement, Board Chairperson Reynolds Bowa also said the subsequent tariffs for 2025 to 2027 will remain conditionally approved subject to the ERB’s annual review of the Regulatory Clearing Account.

Engineer Bowa explained that the approved residential tariffs for consumption above 100 to 300 kilowatts per hour is K1.05 from 95 ngwee, while consumption above 300 to 500 kilowatts per hour is K1.69 from K1.54.

“With regards to commercial tariffs, consumption of up to 100 kilowatts per hour will now cost 78 ngwee from 67 ngwee, while above 100 to 300 kilowatts per hour is K1.04 from 94 ngwee.”

In April 2023, ERB approved Zesco’s multi-year tariffs for a five year period from 2023 to 2027.

While the 2023 retail tariffs were approved effective 1^st May, 2023, the subsequent tariffs from 2024 to 2027 were conditionally approved subject to the Board’s annual review.