Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

CZI threatens ‘suit’ over ZESA tariffs

CZI threatens ‘suit’ over ZESA tariffs

By Roadwin Chirara and Reagan Mashavave
Tuesday, 22 February 2011 18:00

HARARE – The Confederation of Zimbabwe Industries (CZI) has threatened
litigation against the Zimbabwe Electricity Supply Authority (ZESA) over the
recent 50 percent electricity tariff hike as it could further cripple
businesses and consumers.

In a tripartite statement with Zimbabwe’s Consumer Council and Chamber of
Mines, CZI president Joseph Kanyekanye said his organisation will take
action if the increases were not reviewed downwards.

“If these guys don’t withdraw the incresease, we will take some action and
legal action is one of them,” he said.

Although government and the private sector have a regular platform where
they discuss mutual issues such as energy pricing and availability,
Kanyekanye said they were no consultations in the latest increases.

“We expect a certain level of understanding and are worried about this
culture of arrogance,” he said, adding the upward revision showed a lack of
responsibility and disregard for consultations.

He said the increase contravened chapter 13:19 of the Electricity Act, which
requires consultations before any adjustments.

Even though Zimbabwe’s businesses and consumers have been hit by a massive
rate hike, they have always suffered long hours of blackouts – throwing
commercial activity and production as well as homes into chaos.

On the other hand, Kanyekanye said the power utility had also deliberately
ignored a recent Competition Tariff Commission (CTC) ruling that ZESA should
revise downwards its  prices.

“The CTC investigated ZESA and found evidence of abuse of its monopoly
status (and) instructed ZESA to review its tariffs downwards, but ZESA it
appears has completely defied the CTC,” he said, adding the decision was
taken to increase the utility’s bottom line at the expense of customers.

At any rate, the Zimbabwe Electricity Regulatory Commission was not properly
constituted, hence its approval and decisions on the tariff increase were
not binding, the CZI boss said.

Meanwhile, the CZI on Monday said it condemned the recent renewal of
sanctions on President Robert Mugabe’s inner circle and called on the
European Union (EU), and its western allies to drop the travel and financial

Kanyekanye said in a separate statement that the sanctions exacerbated
divisions in the 2008 unity government between Mugabe and Prime Minister
Morgan Tsvangirai.

“It is with deep regret that CZI received the news of the renewal of
sanctions by the European Union,” he said.

“CZI has long maintained that these sanctions… (are) a major impediment to
the normalisation of the political situation in Zimbabwe. At the end of the
day, ordinary Zimbabweans suffer as a result of these sanctions and their
renewal is a major disappointment,” Kanyekanye said in the shocking
statement, adding ‘foreigners’ must not be allowed to derail progress made
in the country so far.

“We should not allow woefully misinformed decisions by foreigners to derail
our progress,” he thundered.

The CZI boss also said business is on ‘record saying there is no reason for
elections’ this year as Zimbabwe’s economy recovers from a decade of decay.

Kanyekanye’s statements come as Masawara plc chief executive Shingai Mutasa,
among other high profile business executives, recently told an investment
conference in Harare that sanctions must go.

Although the 27–member bloc removed 35 people from the sanctions list, it
renewed the punitive measures – instituted nearly a decade ago – for a year.


107MW solar plant for Hwange

107MW solar plant for Hwange   12/7/2019 The Chronicle Pride Mahlangu, Business Reporter INDEPENDENT power producer, Power Ventures (Private) Limited, has applied for a licence

Read More »

New Posts: