22 October 2012 – The Zambian Electricity Supply Corporation (Zesco) says it needs about US$4.84 billion to deal with the power deficit facing the country. The company is considering various options for raising the funds including tapping into foreign and local capital markets.
However, the existing power pricing mechanism represents a challenge to Zesco, and for that matter other power utilities in the region, to be able to achieve the raising of funds from capital markets.
A Regional Electricity Regulators Association report on electricity tariffs in Zambia has shown that Zambians are paying the lowest rates in Southern African Development Community (SADC). The study was funded by the United States Agency for International Development to establish the cost of energy in the SADC region.
Zesco has applied for an upward adjustment in tariffs to meet the ever increasing cost generation and transmission of power in the country but this has been met with consumer criticism.