Publication date: 2020, January
Author: CUTS International
Description: Zambia needs to diversify its energy supply away from hydropower, but in the current fiscal context, there is little resource for public investment. With ZESCO heavily subsidizing electricity tariffs, consumers, businesses and the mines all paying below the unit cost for producing power and ZESCO is selling power at a loss. Low tariffs are dis-incentivising the muchneeded private investment in the energy sector as far as independent power companies are concerned. They will not make a return on their investment. In recognition of the challenges to the energy sector, and the impact this has on the wider economy, government committed to accelerate reforms that will ensure that the energy sector attains cost reflective tariffs.
