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What are the implications and outcomes of the mitigation measures Government has undertaken to curb the electricity shortfall?

ANS:

  • Reduction in load shedding.

  • Tariff revision to reflect costs of supply.

  • Huge Government subsidy that affects the capacity to invest in new projects.
  • The additional thermal significantly reduces day load shedding to enable the affected sectors of the economy; both the manufacturers and commercial services to operate in a more predictable manner. Additionally night load shedding reduces to some extent.
  • ERA has to adjust the tariffs to reflect the costs of power supply as a result of increased thermal energy (close to 50%) in the electricity generation mix.

  • Government continues to provide substantive subsidy towards the costs of the power supply for end-users. This is why electricity prices have remained constant since November 2006 in spite of the rising costs of inputs. This subsidy amount could additional provided additional investment in new generation capacity.
  
     

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