The Electricity Control Board (ECB) is reviewing its electricity tariff model to introduce a new incentive-based regulatory framework aimed at improving efficiency and affordability for consumers.

The Executive for Economic and Market Regulation, Pinehas Mutota, said the ECB engaged licensees this week as part of a two-day workshop focused on revising the current tariff structure.

"We are busy engaging the measure, specifically the licences, on the review of the tariff model that we want to introduce, which we'll be using in the calculation of electricity tariffs.  The main purpose of the review of the tariff model is that we want incentive-based regulation for it. We want efficiency as well, and we also want to make the tariff more affordable."

He acknowledged that current electricity tariffs remain relatively high, affecting productivity across various sectors. Mutota added that some licensees are not operating efficiently, and the new model seeks to align service delivery with performance incentives.

"We also understand that some of the licences are probably not so efficient in delivering these services.  We want to bring the tariff to efficiency in terms of how the licences are going to deliver the services. The main objective is to also make the tariff affordable."

The workshop marks the second engagement between the ECB and licensees. Following the consultations, the ECB will compile comments and make recommendations to refine the proposed tariff model before implementation

-

Category

Author
Johanna !Uri#Khos