ZESCO’s tariff hike to raise mealie-meal prices
Mon, 03 Apr 2017 12:18:29 +0000
THE proposed electricity tariff increase by ZESCO will result in higher mealie-meal prices, Millers Association of Zambia (MAZ) Chairperson Andrew Chintala has said.
And Mr Chintala has appealed to Government to quickly intervene in the situation.
ZESCO recently requested ERB if it could increase electricity tariffs by 75% starting May 1, 2017.
But Mr Chintala told the Daily Nation in interview that the tariff increase would push up the cost of production for millers, which would eventually result in an increase in mealie-meal prices.
He said Government should consider the negative impact that the decision by the power company would have on consumers and also be more sensitive to the cost of production millers incur.
“The moment the electricity tariffs go up, that should tell you that we should expect an increment from the output side.
Meaning that definitely there might be a slight increase in terms of prices of the final product, which in this case is mealie-meal and other products that you extract from maize.
“75 % is very high, looking at the current cost of doing business which is already high, so this is something which needs further consultations and we are calling on Government to come to the aid of the millers and many Zambians,” Mr Chintala said.
He also noted that although the power company had broken down the 75% proposed tariff adjustment, the phases were still high for the millers and ordinary Zambians to contain.
Mr Chintala said the 50 percent increase in May and 25 percent increase in September still puts the millers in an awkward situation.
“In as much as they have indicated that the increase will be gradual starting with 50 percent and later increase by 25 percent, whatever way you look at it doesn’t change anything, when you look at the milling machine and the equipment that is involved you see that it needs a lot of energy for it to run,” he said.
Mr Chintala, however, disclosed that his association would make submissions regarding the proposed electricity tariffs adjustment and ensure that electricity remains affordable for millers.
