DID you say ZESCO powering the nation? Which nation? I do a lot of donkey work to supplement my little salary for survival. Electricity was disconnected from my house months ago. I had to sell the bicycle I use for transport to and from work to have the power reconnected. But before that could be done, Zambia Electricity Supply Company (ZESCO) increased the tariffs. For whose sake? Worse still, Government is not willing to give us reasonable salary increment, then for what are we living? Are we money making beings for others? Grieved a Lusaka based teacher.
Challenging accessing electricity as it may be by many households, the Energy Regulation Board (ERB) authorised ZESCO to increase the electricity tariffs for both residential and large scale power users. The utility company argued that the increment was meant to improve its efficiency in providing power to its users and completing the rural electrification programmes, among other projects within the stipulated time frame.
The net effect of these increments pose serious challenges to most Zambian households whose meagre incomes have already been eroded by erratic inflation rates in the country, says the Social Conditions Programmes Officer Miniva Chibuye, of the Jesuit Centre for Theological Reflection (JCTR).
“While it is possible that in the medium term ZESCO may manage to increase Zambia’s capacity to produce more electricity, the country will not manage to restore deforestation and its negative consequences by the same time frame as most households will fall back to charcoal as an alternative source of energy regardless of its spiral effects on ozone layer depletion,” Ms Chibuye added.
This means the brunt of the cost will be faced by households. For example, whilst in 2008 the difference in percentage increase for residential category is at 26.8% compared to the large power category which is at 27.5%, the different is insignificant. Households will be milked more than what they earn. This will be worse if government and other employers will fold their alms and go to slumber instead of improving conditions of services for their employees.
As for 2009, the difference in percentage increment for the two categories is at 16.6% each. However, JCTR says the lopsided percentage increment in 2010 is of great concern as the large power category is pegged at only 2.2% in comparison to the residential category at 11.9%.
Ms Chibuye argued that considering the fact that about 50% of electricity was sold to the mines, the aggregate allocation of a higher percentage to households is not only unjustifiable but will also make it more challenging for households to meet their basic needs.
Electricity is one of the essential needs to the economy as it drives production of goods and therefore, its affordability by many households is supreme. Against this backdrop, the JCTR monthly Basic Needs Basket for the month of December showed that the cost of living for a family of six would rise upward with the adjustments of electricity tariffs by ZESCO.
The Basic Needs Basket for the month of December for a family of six residing in Lusaka was pegged at K1, 636,900. Electricity was put at K113, 000, while charcoal was pegged at K66, 800 per bag. Water was fixed at K 88, 500 per month. But with the new tariffs in place, these commodities would shot up, with electricity alone likely to rise by K30, 284. To this effect, water utility companies have started applying for permission to adjust their charges for water upwards for them to stay in operation.
Ms Chibuye anticipates that the Basic Needs Basket for this year would significantly increase beginning in the month of January 2008 as a result of these adjustments. She elaborates that in 2007, the Basic Needs Basket showed a cumulative increase of cost of living in Lusaka, Livingstone, Ndola, Kitwe, Luanshya, Mongu, Kabwe and Kasama. For instance, the December 2007 Basic Needs Basket for Lusaka recorded a total of K569, 500 for Basic Food Items only, while the total cost of Essential Non-Food Items such as housing, electricity and charcoal is at K1, 067,400, making the total cost for the Basic Needs Basket K1, 636,900. In comparison to November 2007, the December Basic Needs Basket for Lusaka has increased by K38, 450. This was attributed largely to the increased prices of kapenta, dry fish and charcoal (usually seasonally influenced, particularly in the rainy season).
When compared to wages of select jobs or the prevailing income levels in Zambia, coupled with already high pay as you earn (PAYE), escalating fuel prices among others, the challenge of meeting food needs and paying for electricity was insurmountable. Food being one of the foremost of the needs, most households will not manage to access the minimum required nutritional levels, they will only eat to survive. In such an environment, malnutrition and diseases may increase beyond what the already strained medical fraternity would manage to handle. This may proliferate in different sporadic sufferings among many Zambians most of whom are not in any employment.
To a large extent, even the attraction of investors would be challenging due to high production costs they would be exposed to especially that electricity is the most source of power. In an event of supplying them power at lower rates, they would still face the issue of the market as most people’s buying power may not enable them to provide these investors with the most needed market for their commodities. The country would thus lose a lot in terms of revenue even foreign direct investment.
The country’s financial market would be affected more as players in this sector may find it hard to remain in operation. The whole economy would thus not be buoyant as it was supposed to be as no one would like to risky their money in an economy with erratic escalating production costs due to raises in key ingredients in the production system. Who would like to invest where accessing water is expensive, fuel prices hiked anyhow and electric tariff higher than in other areas?
If not handled with the care the tariff increment deserve, by improving workers conditions of services, making the Zambia a haven of minimum good life, industrial unrest would paralyze even the least enjoyed productivity. Civil servants who are often paid the lowest would be the most affected, and may ignite the most catastrophic workforce paralysis if their plight would not be taken seriously by government which is the largest employer and major breaker of conditions of service agreements.
In light of the above, the JCTR urges government to pay particular attention to the needs of the poor in Zambia. JCTR’s Ms Chibuye said there was need to take advantage of the favourable environment in the country to ensure integral human development. She moreover, said in the wake of the economic growth currently being experienced in the country, it should be emphasised that meaningful growth can only occur when the poor benefit the most. She added that attention should be paid to achieving the Millennium Development Goal number one, of reducing by half the incidence of poverty and hunger by 2015.
Ms Chibuye said the JCTR strongly believed that the recommended upward adjustments of the electricity tariffs by ZESCO at the authorization of the ERB were inconsistent with Zambia’s aspiration of meeting basic needs for all citizens.
She argued that for that reason and for reasons going beyond electricity in assuring welfare of the people, it was important that as the National Constitutional Conference resumes sitting, the hub of the discussion should be on ensuring every citizen meets their basic needs.
Basic Needs Basket for December (By JCTR)
(A) COST OF BASIC FOOD ITEMS FOR A FAMILY OF SIX IN LUSAKA
Commodity Kwacha Quantity Total
Mealie meal (breakfast) 34,400 3 x 25 Kg bags 103,200
Beans 8,300 2 Kgs 16,600
Kapenta (Siavonga) 48,000 2 Kgs 96,000
Dry Fish 50,000 1 Kg 50,000
Meat (mixed cut) 16,600 4 Kgs 66,400
Eggs 5,300 2 Units 10,600
Vegetables (greens) 3,200 7.5 Kgs 24,000
Tomato 2,600 4 Kgs 10,400
Onion 2,300 4 Kgs 9,200
Milk (fresh) 9,100 1 x 2 litres 9,100
Cooking oil 17,400 2 x 2 litres 34,800
Bread 3,100 1 loaf/day 93,000
Sugar 4,400 8 Kgs 35,200
Salt 2,000 1 Kg 2,000
Tea (leaves) 9,000 1 x 500 g 9,000
Sub-total K569, 500
(B) COST OF ESSENTIAL NON-FOOD ITEMS
Charcoal 66,300 2 x 90 Kg bags 132,600
Soap (Lifebuoy) 1,600 10 tablets 16,000
Wash soap (Boom) 2,600 4 x 400 g 10,400
Jelly (e.g., Vaseline) 6,900 1 x 500 ml 6,900
Electricity (medium density) 113,000 113,000
Water & Sanitation (med - fixed) 88,500 88,500
Housing (medium density) 700,000 700,000
Sub-total K1, 067,400
Total for Basic Needs Basket K1, 636,900
D) SOME COMPARATIVE FIGURES OF WAGES--''TAKE HOME PAY''
Item Kwacha Item Kwacha
Education Transport (bus fare round trip):
Grades 8-9 (User+PTA/year) K250,000 – K270,000 Chilenje-Town K4,800
Grades 10-12 (User+PTA/year) K300,000 – K410,000 Chelston-Town K5,400
School Uniform (grades 8-12) K70,000 – K180,000 Matero-Town K4,200
Health (clinic) Fuel (cost at the pump)
3 Month Scheme (per person) K5,000 Petrol (per litre) K7,207
No Scheme Emergency Fee K5,500 Diesel (per litre) K6,064
Mosquito Net (private) K15, 000-K20, 000 Paraffin (per litre) K4, 250
(D) SOME COMPARATIVE FIGURES OF WAGES--''TAKE HOME PAY''
Teacher
Nurse
Guard with Security Firm
Secretary in Civil
Service
Average Monthly Income in Urban Low-Cost Area - CSO
Pieceworker
on a Farm
Pay Slip
K841,000 to K1,485,000
K936,000 to K2,624,000
K250,000 to K750,000
K817,000 to K1,480,000
645,326 (between
October 2004 and January 2005)
K3,000 to K15,000
per day
Challenging accessing electricity as it may be by many households, the Energy Regulation Board (ERB) authorised ZESCO to increase the electricity tariffs for both residential and large scale power users. The utility company argued that the increment was meant to improve its efficiency in providing power to its users and completing the rural electrification programmes, among other projects within the stipulated time frame.
The net effect of these increments pose serious challenges to most Zambian households whose meagre incomes have already been eroded by erratic inflation rates in the country, says the Social Conditions Programmes Officer Miniva Chibuye, of the Jesuit Centre for Theological Reflection (JCTR).
“While it is possible that in the medium term ZESCO may manage to increase Zambia’s capacity to produce more electricity, the country will not manage to restore deforestation and its negative consequences by the same time frame as most households will fall back to charcoal as an alternative source of energy regardless of its spiral effects on ozone layer depletion,” Ms Chibuye added.
This means the brunt of the cost will be faced by households. For example, whilst in 2008 the difference in percentage increase for residential category is at 26.8% compared to the large power category which is at 27.5%, the different is insignificant. Households will be milked more than what they earn. This will be worse if government and other employers will fold their alms and go to slumber instead of improving conditions of services for their employees.
As for 2009, the difference in percentage increment for the two categories is at 16.6% each. However, JCTR says the lopsided percentage increment in 2010 is of great concern as the large power category is pegged at only 2.2% in comparison to the residential category at 11.9%.
Ms Chibuye argued that considering the fact that about 50% of electricity was sold to the mines, the aggregate allocation of a higher percentage to households is not only unjustifiable but will also make it more challenging for households to meet their basic needs.
Electricity is one of the essential needs to the economy as it drives production of goods and therefore, its affordability by many households is supreme. Against this backdrop, the JCTR monthly Basic Needs Basket for the month of December showed that the cost of living for a family of six would rise upward with the adjustments of electricity tariffs by ZESCO.
The Basic Needs Basket for the month of December for a family of six residing in Lusaka was pegged at K1, 636,900. Electricity was put at K113, 000, while charcoal was pegged at K66, 800 per bag. Water was fixed at K 88, 500 per month. But with the new tariffs in place, these commodities would shot up, with electricity alone likely to rise by K30, 284. To this effect, water utility companies have started applying for permission to adjust their charges for water upwards for them to stay in operation.
Ms Chibuye anticipates that the Basic Needs Basket for this year would significantly increase beginning in the month of January 2008 as a result of these adjustments. She elaborates that in 2007, the Basic Needs Basket showed a cumulative increase of cost of living in Lusaka, Livingstone, Ndola, Kitwe, Luanshya, Mongu, Kabwe and Kasama. For instance, the December 2007 Basic Needs Basket for Lusaka recorded a total of K569, 500 for Basic Food Items only, while the total cost of Essential Non-Food Items such as housing, electricity and charcoal is at K1, 067,400, making the total cost for the Basic Needs Basket K1, 636,900. In comparison to November 2007, the December Basic Needs Basket for Lusaka has increased by K38, 450. This was attributed largely to the increased prices of kapenta, dry fish and charcoal (usually seasonally influenced, particularly in the rainy season).
When compared to wages of select jobs or the prevailing income levels in Zambia, coupled with already high pay as you earn (PAYE), escalating fuel prices among others, the challenge of meeting food needs and paying for electricity was insurmountable. Food being one of the foremost of the needs, most households will not manage to access the minimum required nutritional levels, they will only eat to survive. In such an environment, malnutrition and diseases may increase beyond what the already strained medical fraternity would manage to handle. This may proliferate in different sporadic sufferings among many Zambians most of whom are not in any employment.
To a large extent, even the attraction of investors would be challenging due to high production costs they would be exposed to especially that electricity is the most source of power. In an event of supplying them power at lower rates, they would still face the issue of the market as most people’s buying power may not enable them to provide these investors with the most needed market for their commodities. The country would thus lose a lot in terms of revenue even foreign direct investment.
The country’s financial market would be affected more as players in this sector may find it hard to remain in operation. The whole economy would thus not be buoyant as it was supposed to be as no one would like to risky their money in an economy with erratic escalating production costs due to raises in key ingredients in the production system. Who would like to invest where accessing water is expensive, fuel prices hiked anyhow and electric tariff higher than in other areas?
If not handled with the care the tariff increment deserve, by improving workers conditions of services, making the Zambia a haven of minimum good life, industrial unrest would paralyze even the least enjoyed productivity. Civil servants who are often paid the lowest would be the most affected, and may ignite the most catastrophic workforce paralysis if their plight would not be taken seriously by government which is the largest employer and major breaker of conditions of service agreements.
In light of the above, the JCTR urges government to pay particular attention to the needs of the poor in Zambia. JCTR’s Ms Chibuye said there was need to take advantage of the favourable environment in the country to ensure integral human development. She moreover, said in the wake of the economic growth currently being experienced in the country, it should be emphasised that meaningful growth can only occur when the poor benefit the most. She added that attention should be paid to achieving the Millennium Development Goal number one, of reducing by half the incidence of poverty and hunger by 2015.
Ms Chibuye said the JCTR strongly believed that the recommended upward adjustments of the electricity tariffs by ZESCO at the authorization of the ERB were inconsistent with Zambia’s aspiration of meeting basic needs for all citizens.
She argued that for that reason and for reasons going beyond electricity in assuring welfare of the people, it was important that as the National Constitutional Conference resumes sitting, the hub of the discussion should be on ensuring every citizen meets their basic needs.
Basic Needs Basket for December (By JCTR)
(A) COST OF BASIC FOOD ITEMS FOR A FAMILY OF SIX IN LUSAKA
Commodity Kwacha Quantity Total
Mealie meal (breakfast) 34,400 3 x 25 Kg bags 103,200
Beans 8,300 2 Kgs 16,600
Kapenta (Siavonga) 48,000 2 Kgs 96,000
Dry Fish 50,000 1 Kg 50,000
Meat (mixed cut) 16,600 4 Kgs 66,400
Eggs 5,300 2 Units 10,600
Vegetables (greens) 3,200 7.5 Kgs 24,000
Tomato 2,600 4 Kgs 10,400
Onion 2,300 4 Kgs 9,200
Milk (fresh) 9,100 1 x 2 litres 9,100
Cooking oil 17,400 2 x 2 litres 34,800
Bread 3,100 1 loaf/day 93,000
Sugar 4,400 8 Kgs 35,200
Salt 2,000 1 Kg 2,000
Tea (leaves) 9,000 1 x 500 g 9,000
Sub-total K569, 500
(B) COST OF ESSENTIAL NON-FOOD ITEMS
Charcoal 66,300 2 x 90 Kg bags 132,600
Soap (Lifebuoy) 1,600 10 tablets 16,000
Wash soap (Boom) 2,600 4 x 400 g 10,400
Jelly (e.g., Vaseline) 6,900 1 x 500 ml 6,900
Electricity (medium density) 113,000 113,000
Water & Sanitation (med - fixed) 88,500 88,500
Housing (medium density) 700,000 700,000
Sub-total K1, 067,400
Total for Basic Needs Basket K1, 636,900
D) SOME COMPARATIVE FIGURES OF WAGES--''TAKE HOME PAY''
Item Kwacha Item Kwacha
Education Transport (bus fare round trip):
Grades 8-9 (User+PTA/year) K250,000 – K270,000 Chilenje-Town K4,800
Grades 10-12 (User+PTA/year) K300,000 – K410,000 Chelston-Town K5,400
School Uniform (grades 8-12) K70,000 – K180,000 Matero-Town K4,200
Health (clinic) Fuel (cost at the pump)
3 Month Scheme (per person) K5,000 Petrol (per litre) K7,207
No Scheme Emergency Fee K5,500 Diesel (per litre) K6,064
Mosquito Net (private) K15, 000-K20, 000 Paraffin (per litre) K4, 250
(D) SOME COMPARATIVE FIGURES OF WAGES--''TAKE HOME PAY''
Teacher
Nurse
Guard with Security Firm
Secretary in Civil
Service
Average Monthly Income in Urban Low-Cost Area - CSO
Pieceworker
on a Farm
Pay Slip
K841,000 to K1,485,000
K936,000 to K2,624,000
K250,000 to K750,000
K817,000 to K1,480,000
645,326 (between
October 2004 and January 2005)
K3,000 to K15,000
per day