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 :: ANNOUNCEMENTS

 ABOUT REGULATION

IMPORTANCE OF REGULATING THE ENERGY SECTOR

  • Establishing a sound regulatory framework has assisted to instill investor confidence in the energy sector.
  • A lot of interest and private sector participation has been generated in the energy sector in Zambia thereby increasing investment in the energy industry in general.
  • Stability and transparency in energy pricing has been achieved in Zambia.
  • The ERB also provides an important avenue of investigating and remedying consumer complaints.
  • The work of the ERB is a balancing act vis-à-vis the needs of energy undertakings with the needs of the consumers.  The ERB has the responsibility to see that the undertakings earn a reasonable rate of return on their investments that is necessary to provide good service, and that the consumer is given quality service at just and reasonable prices.

Investors want clarity and need to know the predictable rules obtaining in the energy sector. For example, in the Fossil Fuels (Petroleum), the ERB has drawn up guidelines for prospective operators wishing to build a depot or service station. The ERB has also developed Standards across the three sub-sectors namely Electricity, Fossil Fuels and Other Forms of Energy. Promotion of competition and investment. The ERB has created the framework which has seen a lot of interest and private sector participation in the sector thereby increasing investment in the energy industry in general. When the ERB came into existence about nine years ago, there were five Oil Marketing Companies (OMCs) operating in Zambia namely:

  1. BP
  2. Agip
  3. Caltex
  4. Mobil
  5. Total

The number of OMCs has grown from five to 19 since the ERB began regulating the sector as follows:-

  1. Agro-fuel Investment
  2. BP Zambia Plc
  3. Chevron Zambia Limited ( Formerly Caltex )
  4. Continental Oil Company Limited
  5. Engen Oil Zambia Limited
  6. Gulf Oil Zambia Limited
  7. Goldstream Oil Limited
  8. Kobil Zambia Limited
  9. Kafco Oil Limited
  10. Mobil Oil Zambia Limited
  11. Odys Oil Zambia Limited
  12. Pegasus Energy & Associates
  13. Petroda Zambia Limited
  14. Petrotech Oil Corporation
  15. Spectra Oil Zambia Limited
  16. Suban Petroleum
  17. SGC Investment Limited
  18. Total Zambia Limited
  19. Zambezi Oil and Transport Company

Stability and transparency in energy pricing has been achieved in Zambia. The ERB also provides an important avenue of investigating and remedying consumer complaints.

The work of the ERB is a balancing act vis-â-avis the needs of energy undertakings with the needs of the consumers. The ERB has the responsibility to see that energy companies earn a reasonable rate of return on their investments that is necessary to provide good service, and that the consumer is given quality service at just and reasonable prices.

MONITORING OF ENERGY PRICES

The Energy Regulation Board has successfully dealt with 10 electricity tariff applications from ZESCO Limited as follows:

Date

Applied for

Approved by ERB

January 1998

30%

25%

October 1998

46%

25%

April 1999

12%

12%

October 1999

15%

0%

April 2000

25%

25%

October 2000

16%

16%

October 2001

0%

0%

July 2001

-50% MD, - 20%

-50%

January 2003

16%

5.3%-50% MD, -20%

January 2005

15%

11%

January 2006

No application

No consideration

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