SIDA commits $1m for electricity study

THE Swedish International Development Agency (SIDA) has committed over US$1million to help the Energy Regulatory Board (ERB) embark on an industry cost of service study of energy sources in the country.
ERB executive director Langiwe Lungu said the exercise will help ERB to inform stakeholders on trends and cost of generation, transmission, supply and distribution of electricity.
Ms Lungu said in an interview recently that the study is necessary as it will help the regulator to have current data to inform the tariff determination process for licenced entities.
“The excise has been funded by SIDA. The last Cost of Service study was undertaken in 2006.We need to study every industry at every stage of electricity production and we hope by the end of next year we will have finalised the study because it takes time to have one.
“It could be earlier but we would like to say that by the end of this year we will know what it cost to produce, transmit and distribute electricity that is generated from poles, solar and petroleum products such as heavy fuel oil, diesel and hydro-power, so we have to determine the tariff objectively,” he said.
Ms Lungu said conducting a study takes time hence the need for all stakeholders to exercise patience.
She said the study is in partnership with the Central Statistical Office.
Ms Lungu said ERB has already found a consultant and is now in the process of negotiating to finalise the procurement process.

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