Business / Economy
CZI to take legal action on Zesa tariff increases
31 Aug 2011 at 05:52hrs | Views
The Confederation of Zimbabwean Industry (CZI) has said it plans to take legal action against the Zimbabwe Electricity Regulatory Commission (ZERC) over the effecting of a 31% tariff increase on electricity charges as the body was not properly constituted to take the decision, Radio VOP reported.
"We believe ZERC is not properly constituted and the apparent use of government officials as proxy for ZERC is illegal and introduces the inefficiency in the regulation of tariffs," CZI said.
"Having pointed this in the past we have instructed our lawyers to take legal action against ZERC to force it to rescind their illegal tariff hikes," the industry body said. "This shows lack of understanding or empathy with the nascent and fragile economic/industrial recovery underway since 2009."
The CZI said the tariff increase would have an inflationary effect as business will pass on the cost to consumers.
CZI said it had not been consulted on the pending increase despite being a member a technical committee set up by government comprising the power utility and industry.
The Zimbabwe Electricity Regulatory Commission (ZERC) has announced upward increase which will see local consumers paying an average of $0,09 cents a unit despite an increase in load shedding.
"We believe ZERC is not properly constituted and the apparent use of government officials as proxy for ZERC is illegal and introduces the inefficiency in the regulation of tariffs," CZI said.
"Having pointed this in the past we have instructed our lawyers to take legal action against ZERC to force it to rescind their illegal tariff hikes," the industry body said. "This shows lack of understanding or empathy with the nascent and fragile economic/industrial recovery underway since 2009."
CZI said it had not been consulted on the pending increase despite being a member a technical committee set up by government comprising the power utility and industry.
The Zimbabwe Electricity Regulatory Commission (ZERC) has announced upward increase which will see local consumers paying an average of $0,09 cents a unit despite an increase in load shedding.
Source - radiovop
