A KITWE businessman has supported the planned increase in Zesco tariffs, describing the decision as necessary for medium- to long-term stability in the energy sector.
Claude and Carol Consultancy principal partner Berry Mwango said in an interview yesterday that Zambia can no longer afford to procrastinate over Zesco tariffs.
“This is a do-or-die situation. We cannot afford to procrastinate anymore. It is either availability or affordability. There is no other choice,” Mr Mwango said.
He said cost-reflective tariffs are expected to increase the number of players in the energy sector and thus improve efficiency.
Mr Mwango said challenges in the energy sector are affecting the cost of production in a big way and there is need to urgently address them.
“We are paying overtime to workers to suit the time when there is power. There are more night-shift operations and this costs money,” he said.
Zesco has proposed to raise its tariffs for residential, commercial and social services, among others.
This is at the back of an increase in the country’s inflation rate from 7.7 percent in September to 14.3 percent in October, driven by the increase in the prices of consumer goods.
Meanwhile, Mr Mwango has advised Government to make prompt and time-sensitive decisions.
He observed that delayed decisions may not produce their desired impact on the economy.