Zambia to double electricity prices

Zambia to double electricity prices
Published: 17 September 2019 (245 Views)
Zambia is in talks with South African power utility Eskom to import 300 megawatts (MW) of electricity, Energy Minister Mathew Nkhuwa said on Tuesday, adding that retail prices could double once imports begin.

Zambia has a power deficit of more than 750 MW because of low water levels at hydropower dams, Nkhuwa told reporters on the sidelines of an energy meeting. He gave no time-frame for when imports could start.

"(Retail prices) will be maybe double the amount because we are paying half the amount that we are supposed to pay for electricity," Nkhuwa said.

Zambia, which has been rationing power after a severe drought hit its hydropower sector, has historically priced electricity below the cost of production via subsidies. Only in recent years has the country started gradually to raise prices.

In 2017, Zambia's energy regulator approved a 75 percent price hike for electricity retail consumers and introduced a flat 9.30 U.S. cents/kilowatt hour (kWh) tariff for mining companies.

Nkhuwa said the government also planned to send a delegation to Mozambique to negotiate a new power-purchase agreement.

Zambia cut its economic growth forecast to around 2 percent for 2019, from an estimated 4 percent, due to the impact of the drought on its power supply and agricultural production.

Zambia, like Zimbabwe to the south, generates most of its power from Kariba Dam on the Zambezi River which is on the border between the two countries.

The Kariba Dam has towered over one of Africa's mightiest rivers for 60 years, forming the world's largest reservoir and providing reliable electricity to the two countries.

But as drought grips the region, flow on the Zambezi river has dwindled to a third of what it was a year ago, limiting generation.


- Reuters

 

You May Like These Videos

Comments

There are no comments.

Latest stories

PHOTOS: Job Sikhala becomes an instant internet joke

by Social media | 03 October 2019 | 258 Views

America says it is worried about Zimbabwe

by Mandla Ndlovu | 03 October 2019 | 312 Views

Madinda Ndlovu to be discharged tomorrow

by Staff reporter | 03 October 2019 | 192 Views

What are behavioral disorders and how can they be managed?

by Temba Munsaka | 03 October 2019 | 180 Views

Government speaks on Robert Mugabe's body parts

by Mandla Ndlovu | 03 October 2019 | 321 Views

Zacc recovers $100m property from looters

by Staff reporter | 03 October 2019 | 189 Views

WATCH: Mnangagwa apologises for destroying Zimbabwe satire

by Mandla Ndlovu | 03 October 2019 | 179 Views

Mphoko's application for release of passport dismissed

by Staff reporter | 03 October 2019 | 145 Views

Zanu-PF restructuring exercise begins

by Staff reporter | 03 October 2019 | 148 Views

Petrotrade declares $1.5 million dividend

by Staff reporter | 03 October 2019 | 93 Views

MSU, Zupco seal bus deal

by Staff reporter | 03 October 2019 | 168 Views

Mnangagwa to open ZMF conference

by Staff reporter | 03 October 2019 | 154 Views

High Court sets EcoCash hearing date

by Staff reporter | 03 October 2019 | 149 Views

Mphoko barred from leaving Zimbabwe

by ZimLive | 03 October 2019 | 150 Views

CIO agents monitor Jonathan Moyo in Kenya

by Mandla Ndlovu | 03 October 2019 | 375 Views

Acie Lumumba targets criminals around Mnangagwa

by Mandla Ndlovu | 03 October 2019 | 360 Views

$100 limit for cash-out transactions

by Staff reporter | 03 October 2019 | 260 Views

ANC starts anti-sanctions campaign

by Staff reporter | 03 October 2019 | 144 Views

ZESN calls for political parties regulation

by Staff reporter | 03 October 2019 | 126 Views

We've no forced labour evidence on Zimbabwe diamonds, says US Embassy

by Staff reporter | 03 October 2019 | 140 Views

Ex-ZPC board chairman freed on bail

by Staff reporter | 03 October 2019 | 135 Views

Cyber Bill seeks to safeguard citizens

by Staff reporter | 03 October 2019 | 110 Views

Cassava launches Vaya tractor services

by Staff reporter | 03 October 2019 | 148 Views

MDC Alliance boycott slammed

by Staff reporter | 03 October 2019 | 101 Views

10-man Bulawayo Chiefs stun Harare City

by Staff reporter | 03 October 2019 | 111 Views

Zimbabwe has a reputational problem, says US

by newzimbabwe | 03 October 2019 | 124 Views

MDC Alliance walk of shame

by Nduduzo Tshuma | 03 October 2019 | 191 Views

MDC councillors want suspension of Cowdray Park projects

by Staff reporter | 03 October 2019 | 113 Views

RBZ floats $300m additional TBs

by Staff reporter | 03 October 2019 | 107 Views

Teenagers rob soldier

by Staff reporter | 03 October 2019 | 116 Views

Duo rape corpse, get death sentence

by Staff reporter | 03 October 2019 | 124 Views

Mnangagwa to fly out for the zenith times

by Staff reporter | 03 October 2019 | 106 Views

Chamisa's MPs approach court to reverse 5 months allowance garnish

by newzimbabwe | 03 October 2019 | 84 Views

Zimra official forges Customs papers

by Staff reporter | 03 October 2019 | 70 Views

Zifa courts two nations for Warriors' friendlies

by Staff reporter | 03 October 2019 | 57 Views