Already high electricity tariffs to go up

Filed under: Breaking News,Business |

Felix Mutati

Finance Minister Felix Mutati has announced that the already high electricity tariffs will soon be adjusted upwards.

Speaking on ZNBC’s Sunday Interview, Mutati said government would continue removing subsidies in the energy sector.

“What we have done is that we are subsidizing a colossal amount in terms of power imports because we can’t afford the effect of continued subsiding in power which has an excess of $30 million every month, that money can be used for public investment, we can for example use that money to finish the Chingola – Kitwe road, there will be need to put in money for the Chingola – Solwezi road and for us to attend to the Great North road, for us to be able to invest in the education infrastructure, in health infrastructure which impacts on majority of our people, we need to remove on a gradual basis the subsidy in electricity,” Mutati said.

“Secondly, we have already engaged a consultant that is going to undertake critical work in order to move to cost reflective tariffs. And we think this exercise should be completed perhaps by June or July this year but certainly by the end of this year as a country we shall move to cost reflective tariffs so that we can begin to minimize on costs.”

And Mutati said government would soon accept an IMF economic recovery programme as it was the right way forward.

“The point we are making is that the direction of IMF from now going forward is going to be the best because one, it is programme that is home-grown and constructed by ourselves and that is just befitting. Moreover, the IMF have been with us for the last few years including when they were here last year. As you know every year to IMF comes to Zambia as a matter of routine …I will soon take the this to Cabinet for further examination, otherwise we already held open debates with opposition leaders and other stakeholders,” said Mutati.

And Mutati has insisted that government would no longer import fuel but that the private sector would be in charge of the task beginning April 01, 2017.


4 Responses to Already high electricity tariffs to go up

  1. You are a liar and a cheat. You do not subsidies anybody but yourself, Lungu and the rest of your top government officials are the ones being subsidize by tax payers so that you get everything free, even toilet paper.

    You cannot have the so called home-grown economic programme because you are a beggar and IMF at all times prescribe the conditions and how the programme would be implemented.You talk as if this was the first time Zambia is dealing with the IMF.Have you forgotten SAP? With SAP Zambia was technically bankrupt and creditors to took 95% hair cut.Zambia is again bankrupt. Lungu and his gang have never even stopped for a moment to try and reflect on the mistakes his predecessors made and then draw lessons from them.This time around IMF and other creditors will not go down same path.

    March 20, 2017 at 10:57 pm

  2. These Zambian thieves, is this man fit to be a minister who thinks every time he stands to speak, he is addressing children/ kids who don’ t reason ? Zambia is in a disaster under the PF government of morons, nincompoops like this minister in question and the self imposed president Edgar Chakolwa Lungu. Every time they think governing a country is like ”ukukole fishimu” collecting caterpillars from the forest and in the process what they forget is that, they are devastating the same country which should be ruled/ governed prudently. Felix Mutati did not go into the PF and accept the ministerial position with the desire to serve the masses but to satisfy his own interests and pockets and who can trust such a hypocrite ? Each and every time he stands to speak, he comes with something which adds more severity to the livelihoods of the already suffering Zambian masses and you call this a pro-poor government? Shame to the Zambians.

    Thuli Siphamandla
    March 21, 2017 at 5:12 am

  3. What is the reason for increasing Tariffs when ZESCO has the cheapest means to produce electricity?
    Why should we subsidize ZESCO’s current inefficient manpower utilization due to filling its ranks with PF Cadres?

    March 21, 2017 at 6:49 am

  4. Mr Mutati,Please before you punish your citizens,look at how much each one earns.Can you explain how many are in gainful employment. We are told 60% of GDP goes into salaries, how many are enjoying these salaries. Why don’t you tackle the equilibrium of production and expenditure before you think of any tariff increments. What will be the impact on deforestation once such increases are made.

    March 21, 2017 at 7:39 am

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Start: 2019-07-01 End: 2019-07-31