* Copper sector braces for rising costs
* Increases to help boost power supply
(Adds quotes, details)
By Shapi Shacinda
LUSAKA, April 16 (Reuters) - Zambia's state-run power utility ZESCO Ltd. has requested a 66 percent tariff increase for this year, and also wants further raises until 2013, the country's energy regulator said on Thursday.
The Energy Regulation Board (ERB) also said Zesco wants to raise power tariffs to the copper mines, industry and domestic users in a bid to have cost-reflective tariffs.
Costs of power generation, transmission, supply and imports from neighbouring countries have risen, mainly due to the global financial crisis, Zesco said in its application.
Zesco also wanted to fund power generation projects to meet rising electricity demand, the ERB said in a statement.
In its application, Zesco had proposed a progressive increase towards cost reflective tariffs within the next five years, the regulator said.
"The average tariff increases per year are 66 percent in 2009, 51 percent in 2010, 21 percent in 2011 (and) 2012, 7 percent in 2013," the ERB said.
Analysts said that if the tariffs were approved, they would harm copper mining in Africa's biggest copper producer.
Frederick Bantubonse, the executive director of the Chamber of Mines of Zambia, which represents interests of foreign owned mining companies, said the proposed increase in tariffs would raise the costs of production and ultimately harm copper output.
"The (proposed higher) tariffs will have an impact on the mines because even manufacturers will increase prices of their supplies to the mines," Bantubonse told Reuters.
The power firm has said it plans to expand its customer base by connecting 49,100 new customers in 2009, the ERB said.
Zesco's Managing Director Rhodnie Sisala said it plans to spend $312 million in less than four years for rehabilitation, transmission and distribution projects.
Some of the cash would be raised on the Lusaka Stock Exchange and some through bonds.
Zambia's government had granted Zesco $50 million to assist in the power rehabilitation programme, the ERB said.
(Reporting By Shapi Shacinda, Editing by Peter Blackburn)