ZESCO TARIFFS REMAIN UNCHANGED PENDING ERB REVIEW OUTCOME
ZESCO TARIFFS REMAIN UNCHANGED PENDING ERB REVIEW OUTCOME
ZESCO Limited received approval for a multi-year tariff plan covering the years 2023 to 2027. The tariffs set for 2024 to 2027, however, are provisionally pre-approved and are contingent on the Energy Regulation Board’s (ERB) yearly review. This evaluation will consider ZESCO’s performance in 2023, examining key performance indicators such as energy and revenue sales, cost management, operations, and capital spending.
The final determination of ZESCO’s 2024 tariffs by the ERB is expected by May 2024, marking one year since the implementation of the 2023 rates. The ERB’s review could lead to three potential outcomes: maintaining the existing tariffs if ZESCO meets its performance targets, increasing rates due to unforeseen costs incurred by the utility, or decreasing tariffs if ZESCO experiences unexpected revenue increases.
The ERB independently makes these tariff adjustments based on the Multi-Year Tariff Framework, with no direct influence from ZESCO.
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