The ZERA Mandate
As outlined in the Energy Regulatory Authority Act [Chapter 13;23] of 2011 and other ancillary instruments, ZERA serves the nation through continuously striving to achieve the following key result areas:
Increase Access & Security of Supply
To ensure the maximization of access to energy by consumers that is affordable and environmentally sustainable.
To promote coordination and integration in the importation, exportation and pooling of energy from any source in the SADC and COMESA region
Key Stakeholder Advisory
To establish appropriate consumer rights and obligations regarding the provision of energy services.
To arbitrate and mediate disputes among and between licensees and consumers and To represent Zimbabwe internationally in matters relating to the energy industry.
Regulation & Licensing
To ensure that prices charged by licensees are fair to consumers in the light of the need for prices to be sufficient to allow licensees to finance their activities and obtain reasonable earnings for their efficient operation.
To establish or approve operating codes for safety, security, reliability, quality standards and any other sector related codes and standards for the energy industry or any sector thereof.
Energy Efficiency & the Environmental Protection
To assess, promote studies of and advise the Minister and licensees on the environmental impact of energy projects before licensing.
Research & Development
To undertake such other things which it considers is necessary or convenient for the better carrying out of or giving effect to the functions of the Authority
To promote and encourage the expansion of the energy industry and the advancement of technology relating thereto.
Market Reform & Competition
To create, promote and preserve an efficient energy industry market for the provision of sufficient energy for domestic and industrial use.
Electricity Sub-Sector
Electricity Sub-Sector
The electricity supply industry (ESI) is dominated by government owned utility, namely Zimbabwe Electricity Supply Authority (ZESA) Holdings with its subsidiaries: Zimbabwe Power Company (ZPC) and Zimbabwe Electricity Transmission & Distribution Company (ZETDC).
ZPC constructs, owns, operates and maintains power generation stations for the supply of electricity. It currently maintains four coal fired stations which are Hwange, Bulawayo, Munyati and Harare thermal stations and one hydro power station, Kariba South Power Station.
ZETDC carries out the system/network operator function. It is responsible for the transmission of electricity from power stations, the distribution of electricity as well as it retailing to the end users. ZETDC also conducts trade at regional level through the Southern African Power Pool (SAPP).
There are some independent power producers who also operate through production for own consumption and trading
Who is Regulated?
ZERA regulates any person or private companies that operates an electricity undertaking which generates, transmits, distributes, or retails electricity for commercial purposes in excess of 100Kilowatts (KW).
How Are They Regulated?
ZERA issues the following licenses subject to applicants satisfying the terms and conditions spelt out in the relevant Acts:
- Generation license which authorizes the licensee to construct, own, operate and maintain a generation station for purposes of the generation and supply of electricity to any transmission, distribution or supply licensee who purchases electricity for resale to consumers. A holder of a generation license includes a generating company in Zimbabwe that is entitled under an arrangement approved by the Authority to sell power to Zimbabwean licensees or consumers
- Transmission and bulk supply licenses authorize the licensee to carry out grid construction, operation and maintenance of transmission of facilities within Zimbabwe and to carry out the operation of an electric power network
- Distribution and retail supply licenses authorize to construct , operate and maintain a distribution system and facilities including the connection of consumers for the purposes of receiving a supply of electricity, the installation, maintenance and reading of meters, billing and collection.
Validity of Licenses
All licenses are valid for a period of up to a maximum of thirty (30) years subject to satisfying periodic audits conducted by ZERA.
Regulatory Services
ZERA undertakes the following services in the electricity sector:
- Technical audits
- Compliance audit
- Tariff setting
- Research and development
- Investment promotion
- Maintenance of registration of licenses
- Promotion and awareness raising of energy efficiency and renewable energy technologies
- Light handed regulation on power projects which are less than 100kw
Petroleum Sub-Sector
Petroleum Sub-Sector
ZERA regulates the sector through licensing audits, monitoring of prices, setting standards and specification, fuel quality audits and compliance audits. The petroleum sub-sector in Zimbabwe is deregulated and comprises of private and state owned companies. The prices of fuel are market driven but monitored through the pricing formula that takes into account all the associated costs.
Who is Regulated?
ZERA regulates any persons or private companies involved in the production, procurement, distribution, transportation and retailing of the following fuel products for commercial purposes in Zimbabwe:
- Petrol
- Diesel
- Paraffin
- Denatured ethanol and ethanol blends
- Liquefied Petroleum Gas
- Jet A1
How Are They Regulated?
ZERA issues the following types of licenses subject to applicants satisfying the terms and conditions:
- Production licenses authorizing the licensee to construct, own, operate and maintain facilities for the production of petroleum products, including blending ethanol
- Procurement license authorizes the licensee to purchase fuel for the purposes of reselling it in bulk to one or more licensees
- Wholesale license authorizes the licenses to purchase bulk petroleum products from any procurement licensee and production licensee.
- Retail license authorizes the licensee to supply petroleum products to customers
Validity of Licenses
All licenses are valid for a period of one (1) year after which license may be renewed subject to satisfying periodic audits conducted by ZERA.
Regulatory Services
ZERA undertakes the following services in the petroleum industry:
- Infrastructural audits
- Fuel quality monitoring
- Price surveillance
- Licensing audits
- Training and demonstrations on safe use of products among operators and consumers
- Setting standards and continuous improvements
- Investment promotion
Stakeholder Engagement
Stakeholder Engagement
ZERA conducts periodic engagements on energy related issues with various stakeholders who include domestic consumers, farmers, industry, mining, commerce, policy makers, media and licensees. The engagements present opportunities to keep the stakeholders appraised on developments in the energy sector.
ZERA provides a mediation or arbitration role if necessary in the energy related complaints and disputes between licensees and consumers and between licensees
Corporate Social Investments
As a responsible corporate citizen, ZERA invests in sustainable energy related programs that have environmental, social and economic impact among underprivileged communities.
ZERA also values the development of human capital in the engineering sector. It supports students undertaking energy related academic programs at different tertiary institutions.