Clemence Manyukwe, Political Editor
INVESTIGATIONS into ZESA Holdings' alleged abuse of its monopoly have now been completed, The Financial Gazette heard this week.
The monopoly reportedly resulted in excessive tariffs and costly power outages.
The investigation by the Competition and Tariff Commission, which ended last week and may result in a forced reduction of tariffs or civil proceedings to recover any penalties imposed, was conducted in terms of the country’s Competition and Tariff Act. A notice into ZESA’s alleged abuse of its monopoly said the investigation covered “abuse of monopoly by ZESA through excessive tariffs, charging of electricity not consumed through use of estimates in billing and arbitrary cutting of electricity supplies for domestic, commercial and industrial use."
The announcement of the probe comes at a time when the loss- making power utility is continuing with an operation started last month aimed at recovering US$200 million it says is owed by consumers of electricity.
Two weeks ago, ZESA said it was extending load shedding as the Hwange Power Station has been hit by a series of faults on the regional power grid leaving it unable to produce any power.
“These forced outages caused complete loss of generation at Hwange and in the process resulting in major equipment damage. “Hwange power station is making efforts to bring back those generation units,” the statement read.
According to the Competition and Tariff Act, when the Competition and Tariff Commission concludes its investigation it must make recommendation to any serving Minister of Finance.
“Upon completion of an investigation in terms of this section, the commission shall make a report of its findings and recommendation thereon to the Minister, who may, as the case requires do any one of the following. . . impose, abolish or amend any tariff charge to the extent that he/she is empowered by law to do so or take such other action in connection with the report as he/she thinks fit.”
The legislation says in its probe the commission must consider the nature, gravity and duration of contravention of the law; any loss or damage suffered.
“Civil proceedings for the recovery of any penalty imposed may be brought against the party or parties concerned,” the Act further states.
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