The Energy Regulation Board (ERB) has officially approved a new electricity tariff schedule for ZESCO Limited, marking a significant shift from the emergency tariff structure that was implemented to address a national power deficit. These revised tariffs are set to take effect on November 1, 2025, immediately replacing the emergency rates that concluded on October 31. This decision also signifies the reintroduction of the Multi-Year Tariff Framework (MYTF), which was initially approved to cover the period from 2025 to 2027.

James Banda, the ERB Board Chairperson, announced the decision, emphasizing that the comprehensive review was undertaken with a dual objective: to ensure the long-term sustainability of the energy sector while simultaneously safeguarding low-income consumers and providing crucial support to essential public services. Banda confirmed, “The Board has accepted ZESCO’s proposal to end the emergency tariffs and revert to a four-tier residential structure under the MYTF.”

Under the newly approved framework, residential customers are poised to benefit substantially. The highest tariff rate will see a considerable 46 percent reduction, dropping from K6.39 per kilowatt-hour (kWh) to a more affordable K3.45/kWh. Crucially, the cost for the first 200 units of electricity consumed monthly by residential customers will remain unchanged. This measure is specifically designed to protect and support lifeline customers, ensuring continued access to affordable basic electricity.

However, the ERB did not accept all of ZESCO’s proposals. Specifically, ZESCO’s plan to introduce a new Standard Residential Tariff for customers who do not qualify for the lifeline category was rejected. The regulator justified this rejection by stating that the proposed geographical-based mechanism lacked fairness and equality. Consequently, the ERB has directed ZESCO to conduct further studies to develop a more practical and equitable approach for such tariffs.

Beyond residential consumers, the approved framework outlines specific provisions for other customer segments. Tariffs for commercial entities, social services, and water pumping customers will remain stable and unchanged. Notably, the cost associated with W4 water pumping has been reduced, moving from K1.72/kWh to K1.50/kWh. This particular adjustment is a targeted measure aimed at bolstering the supply of clean and safe water across the nation. Furthermore, fixed charges previously applied to distribution and maximum demand customers have been eliminated, replaced by a simplified, energy-only tariff structure.

Banda reiterated that while the new tariffs prioritize consumer protection, the underlying revenue structure has been meticulously designed to ensure ZESCO’s financial viability remains uncompromised. He stated, “The approved revenue structure maintains ZESCO’s ability to meet operational and maintenance obligations while providing affordable electricity to consumers.” These new tariffs are slated to remain in effect until October 31, 2026. Prior to any subsequent tariff adjustments, ZESCO is mandated to submit a comprehensive True-Up Report to the ERB for review and consideration.