Zesa must write off debts: CTC

to register a remedial order for Zesa Holdings (Pvt) Ltd to write-off outstanding bills for all consumers prior to introduction of multiple currencies in February 2009.
The CTC also wants the court to order Zesa to revert to US$40 per month for consumers in low-density areas and US$30 per month for high-density residents.
These charges, the CTC submitted, were directed by the Minister of Energy and Power Development for the period between February 1 and November 30, 2009.
This is in respect to arrears of metered domestic consumers in Harare and Bulawayo.
The commission wants the court to order the power utility to use actual meter readings when billing customers in accordance with the provisions of Zesa (Miscellaneous Charges) by-laws as published in Statutory Instrument 155 of 1988. The commission submitted that all excess payments made on the basis of estimated bills and reconnections fees for consumers whose power was cut after having paid according to the ministers directive, should be credited to accounts of affected consumers.
In respect of non-metered domestic consumers with load limiters, the commission submitted that the power utility should reduce fixed monthly energy charges to 57 percent.
“This being the ratio of power availed for use by consumers monthly for period between February 1 and November, 2009,” the commission submitted.
From December 2009 onwards, the commission said, the fixed monthly energy charges for such consumers should be based on power availed.
In respect of industrial, commercial, mining, farming, schools, universities, Government institutions, hospitals and other consumers, the commission said they should submit their electricity consumption readings to Zesa.
“In the event that the readings are not available and the parties fail to agree, a mutually agreed arbitrator should be appointed.”
The commission submitted that the court should order Zesa to load shed in a fair and equitable manner and advise consumers of the basis used.
CTC director Mr Alexander Juvensio Kububa states in his founding affidavit that the application followed their investigations after the public claimed Zesa was abusing its monopoly in the electricity distribution sector.
The commission accused Zesa of engaging in restrictive practices of an exploitative nature.
“Applicant (CTC) held wide consultations and hearings to establish the veracity of the complaints of the alleged restrictive practices levelled against the respondent in terms of Section 28 of the Competition Act,” the commission submitted.
“Based on these findings, the applicant on August 16, 2010 made a remedial order in terms of Section 31 (3) of the Competition Act which order was gazetted on the 20th of August 2010 under general notice 233 of 2010,” the CTC said.
The commission accuses Zesa of excessive pricing, high interest on outstanding bills, unwarranted demand for security deposits, and frequent use of estimates in billing rather than the actual readings.
Zesa spokesperson Mr Fullard Gwasira yesterday told The Herald: “The case is now before the courts and it will be subjudice to comment.”
Justice Susan Mavangira will hear the matter.