MINISTER of Mines, Energy and Water Development Christopher Yaluma says Zambia is among Southern African Development Community (SADC) countries that have agreed to implement cost effective electricity tariffs by 2019.
Mr Yaluma said on ZNBC’s Sunday Interview that the revision of energy tariff is aimed at making the sector sustainable and attracting new investment to the industry.
“The 43rd summit of ministers responsible for energy, held on July 24th, agreed that all SADC countries must start revising energy toward cost effective tariffs and must attain this by 2019,” Mr Yaluma said.
He said Zambia’s electricity tariffs are very low compared to other countries in the region, and this has hindered the participation of foreign investors in the energy sector.
“Investors are pessimistic about making a return on their investments because of the low tariffs,” Mr Yaluma said.
He said ZESCO cannot continue to sustain its operations with the low electricity tariffs.
“We are the lowest in the SADC at 5. 64 cents per kilowatt hour as compared to the highest, Uganda at 16 cents. Government is subsidising the deficit,” Mr Yaluma said.