ZIMBABWE Law and Practice Contributed by: Nikita Madya and Chantele Sibanda, Wintertons
4.6 Transmission Charges and Terms of Service All prices or tariffs in connection with the provision of an electricity service or the operation of an electric- ity power system by a licensee or proposed licensee must be approved or fixed by ZERA. ZERA fixes or approves prices and tariffs for licensees with a view to: • enabling an efficient licensee to recover the full costs of its business activities, including a reason- able return; • providing incentives for the continued improve- ment of the technical and economic efficiency with which the services are supplied; • protecting consumers while keeping them informed about the cost their consumption imposes on the licensee’s business; • avoiding undue discrimination between customers and customer categories; and • phasing out or substantially reducing cross-subsi- dies. ZERA may, however, allow a lifeline tariff for some customers. ZERA also has the authority to approve prices and tariffs that are established pursuant to the terms and conditions of a contract between licensees (or between a licensee and one or more customers), which includes methods and formulas that allow for the calculation of prices and tariffs. Notwithstanding this, in fixing or approving prices and tariffs, ZERA may differentiate between consumers based on dif- ferences in total electricity consumption, the time periods in which electricity is consumed, load factor, power factor, voltage levels, and other criteria that affect the cost of providing a service. An aggrieved party may make an appeal to the Admin- istrative Court. For the purpose of determining such an appeal, the Administrative Court may require ZERA to furnish it with: • the reasons for the decision or action that is the subject of the appeal; and • a copy of any evidence upon which the reasons are based.
• guidelines on non-discriminatory open access by third parties to transmission facilities (in the case of the primary licensee); and • an environmental impact assessment prospectus/ certificate. This process can take up to two years, as it generally takes a while to obtain some of the documents and permits required to be submitted to ZERA with the application. 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities There are no typical terms and conditions imposed on approvals to construct and operate a transmission line and associated facilities in Zimbabwe. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Proponents of the construction and operation of a transmission line have no eminent domain, condem- nation, or expropriation rights in Zimbabwe. Land-use rights are usually acquired by way of leasing land from the relevant authority or municipality. The lessee then pays “rent” to the municipality as a form of compensa- tion. If the transmission line is on private property, one must negotiate with the owner of the land. 4.5 Monopoly Rights to Provide Transmission Services Section 47 (6) of the Electricity Act provides that “unless expressly indicated in the licence, the grant of a licence shall not hinder or restrict the grant of a licence to another person for a like purpose and in the absence of such express indication the licensee shall not claim any exclusivity”. However, ZERA may allow a licensed activity to be exclusive for all or part of the period of the licence, for a specific purpose, for a geographical area, or for some combination of these.
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