Business / Companies
Electricity Act ammended to pave way for ZETDC unbundling
18 Jun 2013 at 08:55hrs | Views
Government has amended the Electricity Act to make way for the unbundling of the Zimbabwe Electricity Transmission Distribution Company.
Under the unbundling, ZETDC will be split into two companies responsible for transmission, marketing and systems operations of electricity and the distribution of supply of electricity respectively.
The Electricity Amendment Bill also provides for the transfer of assets and liabilities of the ZETDC to successor companies.
"With effect from the date of commencement of the Electricity (Amendment) Act 2013 or no later than six months thereafter ZETDC shall be unbundled and two companies shall be incorporated in terms the Companies Act," reads part of the amendments.
The unbundling is expected to improve efficiency and encourage private investment in the energy sector.
Government will wholly own the distribution company, while the transmission company would be a joint venture between Government and private players.The move is also in line with Government efforts to encourage private player participation in the generation and distribution of electricity.
Source - Byo24News
