Exemption of mining firms on Zambia’s new electricity tariffs irk stakeholders

Authorities in Zambia on Friday came under attack by stakeholders for exempting mining firms from the new electricity tariffs despite the sector consuming over 50 percent of generated power.

The Energy Regulation Board (ERB) has approved an application by the country’s power utility to increase tariffs by 75 percent this year to be implemented in two phases, with 50 percent to be effected this month while 25 percent will be effected in September.

But the energy regulator said mining firms will not be affected by the new tariffs, saying the mining tariffs would only be established after the power utility concluded discussions on the matter with the stakeholders.

The Energy Forum, a local lobby group, said it was shocked that mining firms have been exempted from the new tariffs despite consuming about 50 percent of generated power in the country.

“While we recommend the ERB for the approval of the cost-reflective tariffs, we are saddened that mining companies have not been captured in the new tariffs,” Johnstone Chikwanda, the chairperson of the organization said in a statement.

The organization has since demanded a detailed statement from the power utility explaining why mining firms have been left out, adding that for a long time, subsidies have been benefiting the mining firms more than domestic consumers. Enditem

Source: Xinhua/NewsGhana.com.gh

Read Full Story