Posts Tagged ‘ERB’

ELECTRICITY USERS’ TARIFF HIKE HEARING TURN OUT POOR – ERB

Monday, July 26th, 2010

By ZAMBIA NEWS FEATURES CORRESPONDENT

The Zambia Energy Regulation Board (ERB) is disappointed with the poor turn out of people at public hearings where people were to submit their views on proposed electricity tariff hikes.

ERB chairman Sikota Wina said in a speech at a press briefing and made available to the Zambia News Features Thursday that only 20 out of 46 people who had made written submissions turned up at the hearings to articulate their positions.

ZESCO

ZESCO van

Wina made the disclosure when he announced an almost 26 percent hike of Zambia Electricity Supply Company (ZESCO)’s tariffs which would take effect from August 1, 2010 to 2011 and would be applied according to customer categories.

ZESCO earlier applied to ERB to increase tariffs by 36 percent but Wina said the board arrived at its decision to approve the 25.6 percent increase after considering submissions from both the power utility company and the general public.

Residential customers would now be paying K376.09 per kilo watt hour representing a 41 percent instead of the 69 percent tariff increase which ZESCO applied for while large power consumers would now be paying K320.54 per KW hour representing
a 12 percent increase.

ERB also noted that ZESCO has not yet shifted its staff tariff to the regular residential tariffs contrary to ERB directives.

“Due to the continued failure by ZESCO to implement the board directive of 2007 and 2009 to abolish its staff tariffs, the ERB has converted the staff tariff to pre-paid residential tariff,” Wina said.

He said that this meant that if ZESCO continued to charged the uneconomic staff tariff, ZESCO would forego an estimated revenue of K3 billion.

“This measure is to ensure that the burden of uneconomic staff tariffs is not borne by ordinary consumers but by ZESCO itself. If ZESCO does not comply with this directive immediately, the ERB will apply other regulatory sanctions against the utility,” Wina said.

Zambian electricity consumers have in the last few years been hit by constant power cuts which ZESCO calls load shedding due to aging power generation and distribution equipment and coupled with this the consumers have also faced ever increased tariffs.

ZESCO has also introduced pre-paid meters in most areas of Lusaka and the Copperbelt but most consumers now opt to use charcoal for cooking and other heating needs and only use electricity for electricity appliances such as fridges, TVs and Hi-Fis.

(Edited by Gershom Ndhlovu. Contact us on editor@zambianewsfeatures.com)

OPPOSITION URGES REVIEW OF FUEL FUND

Wednesday, May 12th, 2010

*USE STRATEGIC FUEL FUND TO STABILISE PRICES

By Gershom Ndhlovu

ZAMBIA’s opposition United Liberal Party (ULP) has called on government to urgently review the implementation and performance of the Strategic Reserve Fund (SRF) for it to become an effective tool in resolving fuel shortages and cushioning price fluctuations in the fuel industry.Sakwiba Sikota

ULP president Sakwiba Sikota said in a statement Wednesday that currently the relevance of the SRF in stabilising diesel fuel prices was increasingly becoming questionable because of pressure from various quarters to divert the fund.

The SRF was established to pile up stocks of fuel so that in times of shortages, fuel could be offloaded on the market to stabilize prices and also in times when fuel costs increase rapidly, fuel stocks could be released at a lower cost and not to be a source of funding for other capital intensive projects such as road rehabilitation.

Under the SRF, established in 2006, motorists and other consumers of diesel pay K252 for every litre purchased. At current national consumption levels of 1,500,000,000 litres of diesel per month, government has been collecting approximately K 350, 000, 000, 000 (about US$75 million).

Sikota, State Counsel and Livingstone Member of Parliament, issued his statement a day after the Energy Regulation Board (ERB) increased the pump price of petrol to K7, 573 (approximately US$1.50) per litre from K6, 652 while diesel was hiked to K6, 898 from K6, 414.

“Government needs to assure the nation that SRF is prepared to deal with any shortages and price increases that could arise as a result of a BP pullout from the Zambian market.  Government needs to inform the nation on the available stocks of fuel reserved under the Strategic Reserve Fund to deal shortages that might arise from the pullout by BP Zambia,” Sikota said.

BP recently announced that it was pulling out of Zambia and intended to sell off its assets which include distribution centres in Ndola and the capital, Lusaka and a chain of filling stations throughout the country.

The solution to the perennial fuel shortages, Sikota said lay with government utilizing the money collected in the SRF for its intended purpose of ensuring a constant supply of stock feed at INDENI, an oil refinery in Ndola, for the production of diesel and other petroleum products.

“The supply can improve and the price of diesel can be kept stable and uniform through out the country if government utilizes funds from the Strategic Reserve Fund correctly.

“The money raised through the SRF can also be used to construct storage facilities for diesel and other petroleum products to avoid shortages. Government should stop diverting money from the Strategic Reserve Fund to other areas because the practice will continue to affect the supply and prices of fuel in the country,” Sikota said.

Meanwhile, the ULP has called on government to introduce policies that would facilitate the development of competitive small-scale milling facilities in towns and villages where maize storage sheds exist.

SUGAR COMPANY TO GENERATE ITS OWN POWER

Tuesday, May 11th, 2010

By Gershom Ndhlovu

In a country where power blackouts are euphemistically known as load-shedding by the sole electricity supply company, Zambia Electricity Supply Corporation (ZESCO),  and are the order of the day, a big agribusiness company, Zambia Sugar Plc, has come up with a solution to beat the regular power cuts.

Zambia Sugar Plc, which runs the Nakambala Sugar Estates and a sugar refinery in the Southern Province town of Mazabuka, about a 100 km south of the capital, has installed five generators with a capacity to produce 40 megawatts, adequate to meet the factory operations as well as the demands of the massive estate which relies on irrigation from the waters of the nearby Kafue River.

However, the Energy Regulation Board (ERB), a statutory board that superintends over the energy sectors of fuel and electricity supply, has advised multi-national Illovo-owned Zambia Sugar Plc, to apply for a licence for the power plant which is yeat to reach full operational capacity.

In a statement of May 6, 2008, signed by ERB acting Executive Director Mushiba Nyamazana, the board last month sent a team of inspectors to ascertain the installed capacity and determine if this met the threshold to warrant an electricity generation licence.

In addition, the team wished to establish the status of bio-ethanol production as a by-product of the sugar production process. Bio-ethanol is currently not being produced at the moment.

“It was established that ZESCO Limited supplies power to Zambia Sugar via a 33kV bulk supply point. The power is then fed to the Zambia Sugar Plc 33kV switchyard, which supplies power to the Nakambala Sugar Estate operations and community. Zambia Sugar Plc has installed a 25 MVA transformer which steps downs power from 33Kv to 11kV then supplies the sugar factory,” said the statement.

The statement further stated that the ERB team was informed that the electricity generated was used for factory operations in addition to supplying the Zambia Sugar Estate community. The company also intends to extend supply to sugar outgrower schemes in future.

“Further, the ERB was also informed that the amount of electricity generated varied depending on the quantity of bagasse, a by-product of the sugarcane production process, which is used in the generation of electricity. A higher volume of sugar cane processed translates into a higher quantity of bagasse leading to higher quantity of electricity being generated.

Meanwhile, ERB has announced an increase in fuel prices by between 9.8 per cent and 13.18 per cent effective midnight Tuesday.
The current increase comes barely four months after ERB announced a 15 per cent increment last January.

Dr Nyamazana attributed the increase to rising international fuel prices as well as the government’s decision to phase out fuel subsidies.