Investing.com - Financial Markets Worldwide
😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

UPDATE 1-Zambia says to end power tariff subsidies for big firms

Published 2015-08-14, 10:47 a/m
© Reuters. UPDATE 1-Zambia says to end power tariff subsidies for big firms
VED
-
HG
-
GLEN
-
0P6E
-

(Adds details, background)
LUSAKA, Aug 14 (Reuters) - Zambia's government will stop
supplying cheap electricity to large industries as Africa's
second largest copper producer battles a costly power shortages.
The move away from subsidised electricity tariffs for large
consumers will happen immediately, while state utility Zesco
will source energy from private producers to plug the deficit,
government spokesperson Vincent Mwale said.
Zambia's government had used the low electricity tariffs as
an incentive to encourage foreign firms to take over ownership
of local mining companies, however, it now wants to raise more
funds to build power plants, Mwale said.
On Wednesday Zambian power companies said the were cutting
electricity supply to mining firms by 30 percent as electricity
shortages intensified.
Zesco, which generates most of Zambia's electricity, has
seen its supply deficit stretch to 560 megawatts after a drought
earlier in the year pushed down water levels at its
hydro-electric plants. ID:nL5N10H4C5
Zambia's largest supplier of power to mines, Copperbelt
Energy Corp CECZ.LZ , is also experiencing severe shortages and
has had to limit power supply to big mining firms including
First Quantum Minerals FM.TO , Vedanta Resources VED.L ,
Glencore GLEN.L .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.