©2005 Zimbabwe Electricity Regulatory Commission (ZERC)
About ZERC
VISION
To be the leading world authority on electricity supply regulation.
MISSION
MISSION
To transparently achieve efficiency, fair pricing, reliability, and accountability in the provision of electricity services through teamwork.
VALUES
- Professionalism
- Professionalism
- Transparency
- Integrity
- Team Work
- Accountability
BACKGROUND
The Zimbabwe Electricity Regulatory Commission (ZERC) is a statutory body established in terms of the Electricity Act, (Chapter 13:19) No. 4 of 2002, (the Act) as amended by the Electricity Amendment Act No. 3 of 2003. It became effective in August 2003.
The Act deregulated te electricity industry and allowed other players into the system albeit initially in generation only and hence create an envioment for competition.
The Act unbundled ZESA and completely changed its structure from a vertically integrated entity where as one company it had been responsible for the generation, transmission and distribution of electricity and instead created three successor companies namely; Zimbabwe Power Company (ZPC), Zimbabwe Electricity Transmission Company (ZETC), Zimbabwe Distribution Company (ZEDC). These are the regulated entities.
ZESA Holdings was created through an amendment to the Act, the Electricity Amendment Act No. 3 of 2003 and its function and role is to hold shares on behalf of the government in the successor companies. The Act also allows for the setting up of companies to take over the non-regulated business of ZESA. These are ZESA Enterprises (comprising of Transport, Projects, Technology Centre and Production Services) and Powertel. The Commission does not regulate ZESA Holdings, ZESA Enterprises and Powertel because they are not involved in generation, transmission and distribution of electricity except in so far as they affect the efficient operations of the regulated companies.
The Rural Electrification Agency (REA) was created by the Rural Electrification Fund Act (Chapter 13:20) No. 3/2002 that became effective in May 2005. REA administers a special fund under this Act which finances rural electrification projects. ZESA had, before the Act was promulgated, been administering REA. The REA Board now administers the Agency and is accountable to the Minister of Energy and Power Development.
The Act confers upon ZERC the Authority to fully and independently regulate the new industry and no entity can generate, transmit or distribut e or import electricity even for its own consumption, without ZERC's permission. The permission is granted in the form of a licence that stipulates strict rules of operation that have to be complied with by the licencee.
- Integrity
- Team Work
- Accountability
BACKGROUND
The Zimbabwe Electricity Regulatory Commission (ZERC) is a statutory body established in terms of the Electricity Act, (Chapter 13:19) No. 4 of 2002, (the Act) as amended by the Electricity Amendment Act No. 3 of 2003. It became effective in August 2003.
The Act deregulated te electricity industry and allowed other players into the system albeit initially in generation only and hence create an envioment for competition.
The Act unbundled ZESA and completely changed its structure from a vertically integrated entity where as one company it had been responsible for the generation, transmission and distribution of electricity and instead created three successor companies namely; Zimbabwe Power Company (ZPC), Zimbabwe Electricity Transmission Company (ZETC), Zimbabwe Distribution Company (ZEDC). These are the regulated entities.
ZESA Holdings was created through an amendment to the Act, the Electricity Amendment Act No. 3 of 2003 and its function and role is to hold shares on behalf of the government in the successor companies. The Act also allows for the setting up of companies to take over the non-regulated business of ZESA. These are ZESA Enterprises (comprising of Transport, Projects, Technology Centre and Production Services) and Powertel. The Commission does not regulate ZESA Holdings, ZESA Enterprises and Powertel because they are not involved in generation, transmission and distribution of electricity except in so far as they affect the efficient operations of the regulated companies.
The Rural Electrification Agency (REA) was created by the Rural Electrification Fund Act (Chapter 13:20) No. 3/2002 that became effective in May 2005. REA administers a special fund under this Act which finances rural electrification projects. ZESA had, before the Act was promulgated, been administering REA. The REA Board now administers the Agency and is accountable to the Minister of Energy and Power Development.
The Act confers upon ZERC the Authority to fully and independently regulate the new industry and no entity can generate, transmit or distribut e or import electricity even for its own consumption, without ZERC's permission. The permission is granted in the form of a licence that stipulates strict rules of operation that have to be complied with by the licencee.
The Commission is the only legal authority that can approve a
tariff increase.
tariff increase.
OBJECTIVES OF THE COMMISSION
a) create, promote and preserve efficient industry and market structures for the provision of electricity services and to ensure the optimal utilization of resources for the provision of such resources;
b) to maximize access to electricity services by promoting and facilitating consumer connections to distribution systems in both rural and urban areas;
c) to ensure that the prices charged by licensees are fair in the light of the need for prices to be sufficient to allow licensees to finance their activities and obtain reasonable earnings for their operation;
d) to ensuring safety, security, reliability and quality of service in the production and delivery of electricity to consumers;
a) create, promote and preserve efficient industry and market structures for the provision of electricity services and to ensure the optimal utilization of resources for the provision of such resources;
b) to maximize access to electricity services by promoting and facilitating consumer connections to distribution systems in both rural and urban areas;
c) to ensure that the prices charged by licensees are fair in the light of the need for prices to be sufficient to allow licensees to finance their activities and obtain reasonable earnings for their operation;
d) to ensuring safety, security, reliability and quality of service in the production and delivery of electricity to consumers;
e) to ensure that regulation is fair and balanced for licensees, consumers, investors and other stakeholders in the electricity industry.
FUNCTIONS OF THE COMMISSION
a) promote and implement competition and private sector participation, when and where feasible;
b) establish or approve appropriate operating codes, grid codes and safety, security, reliability and quality standards;
c) establish appropriate consumer rights and obligations regarding the provision and use of electricity services;
d) license and regulate persons engaged in the generation, transmission, distribution and supply of electricity;
e) aid and advise stakeholders in the electricity sector in matters related to the generation, transmission, distribution and supply of electricity;
f) advise consumers regarding the efficient use of electricity;
g) advise the Minister on matters related to electricity systems and services;
h) participate internationally in matters related to electricity services;
i) arbitrate and mediate disputes among licensees and between licensees and consumers;
j) issue guidelines on such matters within its sphere of competence as it determines will be in the public interest.
THE COMMISSIONERS
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