Zesa reimburse customers charged in US dollars: High court

The Zimbabwe High court has ruled that ZESA Holdings must immediately write off debts and reimburse customers charged in United States dollars prior to the introduction of multi-currencies in February 2009.

The power utility is also compelled to credit the amounts in the accounts of customers that had paid their bills in US dollars before February 2009.

It was directed to use actual meter readings when billing consumers subject to the provisions of the Zimbabwe Electricity Supply Authority (Miscellaneous Charges) by-laws 1988 published in Statutory Instrument 155 of 1988.

Zesa is now required to revert to the US$40 per month for consumers in low-density areas and US$30 per month for high-density consumers for the period between February 1 and November 30, 2009 as directed by Government.

During that period, the power utility was still sorting out its billing system.

The Minister of Energy and Power Development directed these charges and is in respect to arrears of metered domestic consumers in Harare and Bulawayo.

"The February 1, 2009 should be used as the statutory point of Zesa's new billing period and that all outstanding charges arising from electricity consumed prior to this date should be written off," the draft order read.

The order by Justice Susan Mavangira on Monday follows the Competition and Tariffs Commission's application following their investigations after the public claimed Zesa Holdings was abusing its monopoly in electricity distribution.

The commission accused Zesa Holdings of engaging in restrictive practices of an exploitative nature.

According to the draft order, all excess payments made on the basis of estimated bills and reconnection fees for consumers whose power was cut off after having paid according to the minister's directive, should be credited to accounts of affected consumers.

In respect of non-metered domestic consumers with load limiters, the court ordered that the power utility should reduce fixed monthly energy charges to 57 percent.

"From December 1, 2009 onwards the fixed monthly energy charges for such consumers (load limiters customers) should be based on power availed taking into account load shedding," the order stated.

The order also directed that in respect of industrial, commercial, mining, farming, schools, universities, Government institutions, hospitals and other commercial entities, they should approach Zesa Holdings and submit electricity consumption where readings are available.

If the readings are not available, the order said if the parties fail to agree on the respective consumption levels, a mutually agreed arbitrator should be appointed.

According to CTC director Mr Alexander Juvensio Kububa, the commission held wide consultations and hearings to establish the veracity of the complaints of the alleged restrictive practices levelled against Zesa Holdings in terms of Section 28 of the Competition Act.

Basing on these findings, the CTC on August 16, 2010 made a remedial order in terms of Section 31 (3) of the Competition Act, which order was gazetted on August 20, 2010 under general notice 233 of 2010.

The commission accuses Zesa Holdings of excessive pricing, high interest on outstanding bills, unwarranted demand for security deposits and frequent use of estimates in billing rather than the actual meter read- ings.

Zesa Holdings spokesperson, Mr Fullard Gwasira, yesterday confirmed receiving the order, adding the power utility had appealed against the order at the Administrative Court.

"I can confirm we have been served with the order from CTC and we have not received yet from the High Court and at the moment Zesa has appealed against the issue and it is now with the Administrative Court and the issue is still subjudice until the court rules on it.

"So we cannot comment until the court proceedings have been finalised," Mr Gwasira said.