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Victory for electricity consumers
Jennifer Dube, The Standard (Zimbabwe)
August 22, 2010

http://www.thestandard.co.zw/business/26081-victory-for-electricity-consumers.html

The beleaguered Zimbabwe Electricity Supply Authority (Zesa) on Friday said it will comply with an order from Competition and Tariff Commission (CTC) to reduce tariffs and reverse some of the bills it gave to consumers.

After a 10-month investigation into complaints that the power utility was abusing its monopoly, CTC last week ruled that the power utility had treated its domestic and commercial clients unfairly.

Consumers complained about Zesa's collapsed meter reading and billing systems, excessive tariffs, overlapping bills, fluctuating and unfair fixed charges, unfair load shedding, arbitrary disconnection of power, poor communication with customers, aggressive and arrogant staff.

"Some of the complaints came to us in written form but others were expressed at various public hearings we held," said CTC chairman Dumisani Sibanda when he presented the findings of the inquiry to journalists.

"Zesa, through its power transmission and distribution subsidiary Zimbabwe Electricity Transmission and Distribution Company (ZETDC) accepted that 95% of the customers' concerns and observations were correct."

Among other measures, the commission ordered that for metered domestic consumers based in Harare and Bulawayo, February 1 last year should be used as the starting point for Zesa's new billing period, and that all outstanding charges arising from electricity consumed prior to that date should be written off.

The country adopted the foreign currency regime in February 2009 and consumers have complained that charging foreign currency for power consumed prior to the date is unfair as the value of the Zimbabwean dollar had been eroded excessively during that period.

"The charges in respect of electricity consumed excluding fixed charges between 1st February 2009 until 30 November 2009 should be in accordance with the Minister of Energy and Power Development's directive, that is, $30 per month for domestic consumers in high density areas and $40 per month for domestic consumers in low density areas," Sibanda said.

"All excess payments made on the basis of estimated bills and reconnection fees for those consumers whose power was disconnected after having paid according to the minister's directive should be credited to the affected consumers' accounts."

CTC recommended that in respect of metered domestic consumers countrywide with load limiters, Zesa must reduce the fixed monthly energy charges to 57%, this being the ratio of power availed for use by consumers monthly for the period between February and November 2009.

From December 2009 onwards, the fixed monthly energy charges for such consumers should be based on power availed taking into account load shedding.

In respect of all other consumers including industrial, commercial, mining, farming, schools, universities, government institutions, hospitals and other commercial entities, CTC said, they should approach Zesa and submit their electricity consumption where readings are available.

Where readings are not available and the parties fail to agree on respective consumption levels, the commission said, a mutually agreed arbitrator should be appointed.

Zesa was also ordered to carry out its load shedding in a fair and equitable manner and advise customers of the basis or reasons for load shedding. Fullard Gwasira, the Zesa public relations manager said the power utility was ready to comply with the order which was registered with the High Court.

"We have not yet received formal communication from CTC but we are looking at the order with a view towards compliance because it was issued by a legally constituted body," Gwasira said.

"But we were already complying with some of the things for example the ministerial directive and fairness in load shedding, it's just that our efforts were being hampered by faults in some areas."

Combined Harare Residents Association chairman Simbarashe Moyo welcomed the development saying residents had on several occasions tried to engage Zesa on the issues without success.

Moyo however said a monitoring mechanism needs to be put in place for full compliance otherwise consumers will continue to be shortchanged.

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