Hiked Power Tarriffs Vital for Investment – CEC Africa


The initiative to increase electricity tariffs in Zambia will attract more investments from the private sector that will supplement Government’s efforts in reducing the current load shedding, CEC Africa Investments managing director Michael Tarney has said.
CEC Africa is a subsidiary of Lusaka Stock Exchange listed Copperbelt Energy Corporation, and its operating assets are a 60 percent stake in Abuja Electricity Distribution Company that covers four states in Nigeria with over 700,000 customers.
Mr Tarney, who is based in Nigeria and was in the country recently, said the tariffs in Zambia are among the lowest on the continent.
“We hope the proposals [initiative] to increase the tariffs continue to reach cost reflective levels since this will attract more private investments into the energy sector, thereby supplementing the efforts being done by Government to reduce load shedding,” he said in an interview recently, in Lusaka.
When asked how the depreciation of the Naira has impacted on company operations, Mr Tarney said there has been minimal impact on cash flow since there is increased demand for electricity in Nigeria.
“Government [Nigeria] has embarked on a project to increase grid connectivity in the townships and this will result in having additional 50,000 consumers per year. It is a long term project, and we anticipate losses in the initial year, which will be recovered in future since the business is looking good,” Mr Tarney said.
The company also has a stake in the Shiroro 600-megawatt hydro-electric power plant concession Nigeria that also has potential for large scale solar farm development.


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