Ans: The Ministry of Energy (MoE) was established in 2016 following the Republican President’s directive to re-align the Ministry from the then Ministry of Energy and Water Development (MEWD). Prior to the re-alignments, the Ministry of Energy and Water Development was part of the Ministry of Mines, Energy and Water Development (MMEWD) which was established in 2012 following the Patriotic Front (PF) Party forming Government in 2011. In 2015, the Ministry of Mines, Energy and Water Development was further re-aligned to the Ministry of Mines and Minerals Development (MMMD) and Ministry of Energy and Water Development.
Ans: Energy Policy
Renewable and Alternative Sources of Energy
Petroleum Storage and Pricing
Ans: Six (Energy Regulation Board, Indeni Petroleum Refinery Company Limited, Rural Electrification Authority, Tazama Pipeline Limited, Zambezi River Authority, ZESCO Limited)
Ans: Electricity, Petroleum and Renewable Energy sub-sectors.
Ans: Electricity Act, Cap 433 of the laws of Zambia, Energy Regulation Act, Cap 436 of the laws of Zambia, Petroleum Act Chapter 435 of the Laws of Zambia, Tanzania-Zambia Pipeline Cap 455 of the laws of Zambia, Zambezi River Authority Act, Cap 467 of the laws of Zambia, Water Resources Management Act No. 21 of 201, Forest Act No. 4 of 2015 and the Rural Electrification Act No. 20 of 2003.
Ans: Kariba North Bank (1080 MW), Kafue Gorge (990MW), Maamba Coal (300 MW) and Victoria Falls (108).
Ans: A schedule of Charges applicable at a point of delivery of electricity by a Licensed Stakeholder, as approved by the by the Regulator of the Energy Sector.
Ans: Economic factors (inflation, exchange rate, etc.); changes in Operation and Maintenance; projected Capital expenditure (CAPEX).
Ans: The Energy Regulation Board (ERB) uses the Revenue Requirement (RR) methodology in determining electricity tariffs.
- RR = O + D + T + (r*B)
- Where: RR = Revenue Requirement
- O = Operating and maintenance
- D = Depreciation
- T = Taxes
- r = allowed rate of return
- B = Rate Base (or Regulatory Asset Base – RAB)
Ans: Tariff determination Premised on:
- Ensures recovery of prudently incurred costs by the Utility;
- Ensure that costs are allocated to customer categories on the basis of the burden placed on the system. This implies no-cross subsidization customer categories;
- Financial sustainability of the Utility;
- The need to attain cost reflective tariffs; Gap between financial and economic tariffs.
- Delivery of quality service; and
- Social considerations for customers with low income levels
Ans: A Tariff that includes the recovery of all the applicable costs of each Licensed Activity within the Supply value chain up to the point of delivery relevant to that Tariff, including coverage of all capital costs and operating and maintenance costs incurred, under efficient execution and within the norms of Best Utility Industry Practices, together with allowance for adequate return on capital commensurate with risk and sufficient to ensure retention of adequate margins for each Licensed Activity along the value chain up to such point of delivery to finance growth of each such Licensed Activity.
Ans: This is an agreement, as amended from time to time, entered into between a Producer as a seller of the electricity produced in its Generation Plant and the Central Buyer, a Distribution Service Provider, a Retail Trader, or a Contestable Customer, for the sale and purchase of electricity under terms and conditions provided therein.
Ans: This is a contractual obligation and undertaking between the seller of electricity and the government (which is not a party to PPA).
Ans: This is an entity which is privately owned and has the capacity or own facilities to generate electric power for sale to utilities and end users.
Ans: Agro-fuel Investment, BP Zambia Plc, Continental Oil Company Limited, Engen Oil Zambia Limited, Gulf Oil Zambia Limited, Kobil Zambia Limited, Mobil Oil Zambia Limited, Odys Oil Zambia Limited, Petroda Zambia Limited, Petrotech Oil Corporation, Spectra Oil Zambia Limited, Suban Petroleum, SGC Investment Limited, Total Zambia Limited and Zambezi Oil and Transport Company
Ans: The Energy Regulation Board (ERB) uses the Cost-Plus Model for determining fuel prices. The Cost Plus Model accounts for cost recovery for both imported crude feedstock and finished petroleum products. This is because all the costs along the supply chain are accounted for in the pricing formula.
Fuel prices in Zambia are mainly determined by two (2) factors: international oil prices and the exchange rate of the Zambian Kwacha against the United States Dollar.
The ERB effects a change to current prices of petroleum products if the proposed change in the wholesale prices, on average, is greater than the set 2.5% threshold.
Ans: Petroleum is the only energy source that is currently wholly imported in Zambia. The commingled crude feedstock is imported via the TAZAMA pipeline which runs from Dar-Es-Salaam to Ndola while finished products are transported via road from South Africa, Tanzania and Mozambique.
Ans: Petrol (gasoline), Jet fuel, Kerosene and diesel fuel.
Ans: In order to encourage investment in filling stations in rural areas, the ERB in collaboration with the Zambia Bureau of Standards (ZABS) developed a Rural Filling Station Standard called ZS 703 (Rural Service Station Code of Practice) in 2010.
The technical requirements for development of a service station under the rural service station code of practice are not as stringent as those in the standard for development of filling stations in urban areas. The relaxed standards however do not compromise safety or the environment. The relaxation of the technical requirements (including waiver of the requirement of canopy, use of simplified pump display and forecourt amongst other things) entails that the capital expenditure required for development of a rural filling station is significantly less than that required for an urban filling station by approximately 66%.
Ans: non-fossil sources of energy that have the potential to serve as fuel for Generation under appropriate technology, including hydro, wind, solar, biomass, biogas and geothermal. It is also energy that is derived from natural processes that replenish constantly.
Ans: Cost-reflective Tariffs that are pre-posted in anticipation of efficiently planned, executed and operated projects that are differentiated by size and by type of Renewable Energy Resource base they use as fuel, using appropriate state of the art technology, and which Tariffs are applicable by related regulation issued by the Authority on projects of equal to or less than an appropriate size limit set by the Regulator of the Energy Sector or an appropriate authority.
Ans: major energy sector reforms occurred around the 1990s with the formulation of the National Energy Policy 1994, establishment of the Energy Regulation Board (ERB), abolishment of ZESCO’s monopoly and allowing the participation of several private operators in the sector. In particular, efforts to reform the energy sector are reflected in a number of policy documents which include; the Twenty Year Power Systems Development Master Plan for Zambia of 1994, the Power Rehabilitation Programme (PRP) 1997 -2006, the Strategic Business Plan 2004-2009, the Zambia Electricity Industry Restructuring, the Cost of Service Study Report of 2006 and the Electricity Strategy for Zambia of 2008. Additionally, the development of the Renewable Energy Feed-In-Tariff (REFiT), and the the policy change to allow for Private Sector participation in the procurement of fuel are major sector reforms that have been witnessed in the year 2017.