zesa logo.jpgIndustry has threatened legal action against the Zimbabwe Electricity Regulatory Commission (ZERC) for approving almost 50% increase on electricity.

The ZERC has come under fire from disgruntled electricity consumers as well as industry for the unjustified tariff increases effected without consultations with key stakeholders contrary as dictated in the Electricity Act (Chapter 13:19) Section 4(4).

In a joint news briefing, representatives of electricity consumers, the Confederation of Zimbabwe Industries (CZI), Consumer Council of Zimbabwe (CCZ) and the Chamber of Mines called for a suspension of the new tariff structure.

The three bodies expressed shock at the tariff adjustments saying it should be resisted.

“The electricity commission should prepare itself for stiff resistance, which includes a legal course if the tariffs are not suspended,” CZI President, Mr Joseph Kanyekanye said.

ZESA holdings under fierce criticism for poor service delivery says the hike on tariffs will result on improved service delivery as well as allow it to recover about US$400 million in debt.

At US$7,53 per kilowatt, electricity is already unaffordable for domestic consumers.

Last year, investigations by the Competition and Tariffs Commission revealed that ZESA was abusing its monopoly status and recommended a downward review of the tariffs, a measure which was defied by the power utility.