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.