Power tariff hikes – but not for mines

Zambia, Africa’s top copper producer, has increased power tariffs by an average 25.06%, but copper mines will not be affected, the Energy Regulation Board (ERB) said recently. The power price increase will hit households the hardest, with their electricity costs rising by 41%, while large power consumers will pay an extra 12%. Power blackouts are frequent in Zambia and are a major concern for foreign mining companies, which own most of the key mines in the Copperbelt province. The ERB said tariffs for power used by big industrial users would rise by 12% while the tariffs for other industrial and domestic users would increase by 25.06%, effective from August 1. The tariffs will apply for one year. “While (state power utility) Zesco applied for a 6% increase for large power consumers, the tariff has increased by 12%,” the ERB said in a statement. Zesco had applied for a raise in power tariffs to meet increasing power demand mainly in the copper mines following expansion by producers and the opening of new mines.