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Home in Southern Africa

Zambia Increases Daily Power Supply to Seven Hours Following Tariff Hikes

by SAT Reporter
November 8, 2024
in in Southern Africa, Zambia
0
Zambia Increases Daily Power Supply to Seven Hours Following Tariff Hikes

Zambia’s national electricity provider, Zesco Limited, has officially announced an extension of daily power supply from three to seven hours, marking a modest but significant improvement for the nation’s electricity-starved consumers. This adjustment, which follows a recent increase in tariffs authorised by Zambia’s Energy Regulation Board (ERB), is aimed at stabilising service delivery and enhancing operational reliability amidst a backdrop of chronic energy shortages.

In a statement issued on Wednesday, Zesco attributed the increased hours to new measures that prioritise the optimisation of power imports and bolster contributions from independent power producers (IPPs). Zesco cautioned, however, that this enhanced schedule could face occasional disruption due to fluctuations in imported power or other unforeseen contingencies.

The decision to raise electricity tariffs, granted by the ERB in October, was part of an emergency strategy proposed by Zesco to generate additional revenue. The higher tariffs are projected to yield approximately USD 15 million per month from retail consumers, a sum intended to finance the importation of 788 megawatts of power—an effort to mitigate Zambia’s ongoing energy deficit.

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Zambia, heavily reliant on hydropower for more than 80% of its energy, has encountered severe electricity shortages attributed to dwindling water levels in key reservoirs. The country’s major hydropower plants have been significantly impacted by below-average rainfall during the 2023-2024 rainy season, precipitating acute reductions in generating capacity. The current drought, coupled with systemic underinvestment in diversification of energy sources, has underscored the vulnerability of Zambia’s energy infrastructure, as well as the need for sustainable reform.

Zesco’s rotational load management measures have been a source of frustration for Zambians, particularly as prior schedules afforded consumers only three hours of daily supply. While the extension to seven hours provides marginal relief, it highlights the challenging balance between revenue generation, import dependence, and the urgency of bolstering domestic energy production.

Energy market analysts note that while Zambia’s tariff hikes may improve Zesco’s capacity to import additional electricity in the short term, structural reforms and investment in alternative energy sources are essential to alleviating the recurring shortages. With global energy prices volatile and hydrological conditions unpredictable, Zambia’s energy sector finds itself at a critical juncture, where strategic investment and regulatory foresight will be essential to stabilise supply and meet the needs of a growing population.

As Zesco navigates these challenges, Zambian households and businesses will likely continue to face an uncertain energy landscape, even as the utility seeks to expand power availability incrementally. The next steps in Zambia’s energy policy will be closely observed by stakeholders, as they are expected to shape not only energy access but also economic resilience for years to come.

Tags: electricity shortages Zambiahydropower dependencyindependent power producers ZambiaZambia energy crisisZambia energy policyZesco power supplyZesco tariff increase
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