Press Release

Basic Needs Basket

Increment of Electricity Tariffs to Challenge Zambian Households Ability to Meet Basic Needs, says JCTR

December 2007

Electricity is one of the essential needs in Zambia and therefore, its affordability by many households is of paramount concern observes the Jesuit Centre for Theological Reflection (JCTR). However, as evidenced by the monthly Basic Needs Basket (BNB) that shows the cost of living for a family of six, the recently announced upward adjustments of electricity tariffs by the ERB implies that the cost of electricity as a percentage of basic needs is high.

When compared to wages of select jobs or the prevailing income levels in Zambia, the challenge of meeting food needs and paying for electricity is insurmountable. Food being one of the foremost of needs, this reality implies that most households after struggling to meet the need for food will switch to other sources of energy such as charcoal. It is a foregone conclusion that one of the immediate implications of the increment in the electricity cost in residential areas is that most households will fall back on charcoal as an alternative source of energy. Consequently, this will negatively impact the environment as a result of deforestation.

“It is a well known fact,” says Miniva Chibuye of the Social Conditions Programme of the JCTR, “that while it is possible, at least in the medium term, to increase Zambia’s capacity to produce more electricity, the country cannot manage to restore deforestation and its negative consequences by the same time frame. Also, with the anticipated increase in demand for charcoal, the price for charcoal is also expected to rise further compromising the poor people’s efforts to meet the basic needs”.

From the analysis made by the JCTR, it appears the brunt of the cost will be faced by households. Whilst in 2008 the difference in percentage increase for residential category at 26.8% compared to the large power category at 27.5% is insignificant. In 2009, the difference in percentage increment for the two categories is at 16.6% each. However, JCTR has noted with great concern the lopsided percentage increment in 2010 with the large power category paced at only 2.2% in comparison to the residential category at 11.9%. Considering that about 50% of electricity is 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.

“Whilst appreciating that the ERB approved rates are lower than what was initially proposed by the service provider, ZESCO, it is objectionable to expect Zambian households, most of them poor, to bear the cost,” says Miniva Chibuye.

The BNB for this year will certainly significantly increase beginning in the month of January 2008 as a result of these adjustments. In 2007, the BNB showed a cumulative increase of cost of living in Lusaka, Livingstone, Ndola, Kitwe, Luanshya, Mongu, Kabwe and Kasama. For instance, the December 2007 BNB 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 BNB K1,636,900. In comparison to November 2007, the December BNB for Lusaka has increased by K38,450. This can be attributed largely to the increased prices of kapenta, dry fish and charcoal (usually seasonally influenced, particularly in the rainy season).

In light of the above, the JCTR urges the government to pay particular attention to the needs of the poor in Zambia. As a nation, we should take advantage of the favourable environment to ensure integral human development. Moreover, 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. Attention should be paid to achieving the Millennium Development Goal number one, of reducing by half the incidence of poverty and hunger by 2015.

This means also that attention must go to all sections of our society, especially in rural areas where recent evidence suggests that households do not afford to meet the recommended calories of 2400 per person per day. According to the October 2007 Rural BNB Research done by the JCTR, the average calories per person per day for Malama, Saka and Matushi were 1600, 1800 and 1300 calories respectively.

The JCTR strongly believes that the recommended upward adjustments of the electricity tariffs by the ERB are inconsistent with Zambia’s aspiration of meeting basic needs for all citizens.

For that reason and for reasons going beyond electricity in assuring welfare of the people, it is important that as the National Constitutional Conference resumes sitting, the hub of the discussion should be on ensuring every citizen meets their basic needs.

The economic, social, political, moral and ethical imperative of enshrining Economic, Social and Cultural Rights, Women and Children’s rights, Rights of Persons with Disability and the Elderly in the new Zambian Constitution’s Bill of Rights can therefore not be overemphasised.

Related Links

December 2007 BNB @K1,636,900

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