ZESA in court over tariff hike

Captains of Industry, under the banner of the Confederation of Zimbabwe Industries, last week filed a landmark application in the Administrative Court against Zesa Holdings.

The application seeks to compel Zesa Holdings to scrap its 31 percent electricity tariff hike which CZI argues will impede the recovery of industry and increase operational costs.

CZI views the hike as a breach of the provision of the Electricity Act, which makes it mandatory for Zesa Holdings to gather views before reviewing and effecting new regime tariffs. The court has given the power utility company 30 days to respond.

The business sector notes the tariff increase affected on September 1, 2011 results in a 53 percent aggregated increase and affects industrial production. Joseph Kanyekanye, the CZI President, challenged Zesa Holdings to give satisfactory answers for their hike.

He criticised Elton Mangoma, the Minister of Energy and Power Development, for approving the hike ''knowing full well that the majority of stakeholders had not been consulted''.

Kanyekanye acknowledged that the manufacturing sector owed the power utility $35 million and accused ZESA of fuelling inflation.

''If the courts do not favour us, we will have to take further action since the power utility has become an agent of inflation,'' he said. ''The Electricity Act is very clear: Zesa Holdings should have collected stakeholder views. At the same time, the Zimbabwe Electricity Regulatory Commission is not properly constituted,” said Kanyekanye.

Post published in: News

Leave a Reply

Your email address will not be published. Required fields are marked *