Major Energy Challenges Availability and accessibility Sufficiency (lifeline supplies) Reliability and Cost Dimension.

Major Energy Challenges

• Availability and accessibility• Sufficiency (lifeline supplies)• Reliability and • Cost Dimension

PROFESSIONALISMPROFESSIONALISMPROFESSIONALISMPROFESSIONALISM

ACCOUNTABILITYACCOUNTABILITYACCOUNTABILITYACCOUNTABILITYTEAMWORKTEAMWORKTEAMWORKTEAMWORK

INTEGRITYINTEGRITYINTEGRITYINTEGRITYTRANSPARENCYTRANSPARENCYTRANSPARENCYTRANSPARENCY

VALUESVALUES

VALUESVALUESBy PROFESSIONALISM:By PROFESSIONALISM:we mean an expert and we mean an expert and ethical approach to regulationethical approach to regulation

By TEAMWORKBy TEAMWORK::we mean: a consultative and we mean: a consultative and participatory process for the achievement of the participatory process for the achievement of the

Commission’s objectives.Commission’s objectives.By ACCOUNTABILITY:By ACCOUNTABILITY:we mean being answerable we mean being answerable for one’s decisions, actions and results in respect of a for one’s decisions, actions and results in respect of a stated responsibility.stated responsibility.By TRANSPARENCYBy TRANSPARENCY::we mean being open, fair and we mean being open, fair and trustworthy with all stakeholders.trustworthy with all stakeholders. By INTEGRITY:By INTEGRITY:we mean conducting business we mean conducting business honestly. honestly.

Principles of Regulation

• Why Regulation?• Subsector, Sector or Multi Sector Regulation• Challenges of regulation

Independence and autonomy Transparency and Accountability Security of supplies Quality and sustainability Promotion of investment and competition in energy sector Consultation and participation of stakeholders

• Mitigating against the challenges• The role of regulators in promoting improvement in energy access:

Pricing Appropriate institutional framework Financing Monitoring Risks and mitigation

a)a)Security of Supplies: Security of Supplies: promotion of competition promotion of competition through private sector participation where feasiblethrough private sector participation where feasible

b)b)Quality Assurance: Quality Assurance: -- Development, monitoring and enforcement of codes Development, monitoring and enforcement of codes

and standards including health and safetyand standards including health and safety- Establishment, monitoring and enforcement of Establishment, monitoring and enforcement of

consumer rights and obligationsconsumer rights and obligations c)c) Promotion of ESI EfficiencyPromotion of ESI Efficiency

-Licensing and regulating entities engaged in the-Licensing and regulating entities engaged in thegeneration, transmission, distribution and supply of generation, transmission, distribution and supply of

electricity and monitoring performance electricity and monitoring performance

STAKEHOLDERS EXPECTATIONS FROM ZERCSTAKEHOLDERSTAKEHOLDER NEEDSNEEDS EXPECTATIONSEXPECTATIONS

GovernmentGovernment Well structured & vibrant ESI Well structured & vibrant ESI Adherence to Act & policy directionsAdherence to Act & policy directions

ESIESI ViabilityViability Involvement in pricing policy formulationInvolvement in pricing policy formulationAdherence to pricing policyAdherence to pricing policy

Fair & transparent regulationFair & transparent regulation

ConsumersConsumers Security of suppliesSecurity of suppliesAffordable pricesAffordable pricesQuality suppliesQuality supplies

Dispute resolutionDispute resolutionConsumer educationConsumer education

Efficient & reliable serviceEfficient & reliable serviceTransparent & fair pricingTransparent & fair pricing

Consistent quality of suppliesConsistent quality of suppliesFair arbitrationFair arbitration

Information on rights & obligationsInformation on rights & obligations

EmployeesEmployees Job securityJob securityEquitable compensationEquitable compensation

Personal & professional developmentPersonal & professional developmentConducive working environmentConducive working environment

Tools of tradeTools of trade

Viability of ZERC & adherence to Labour lawsViability of ZERC & adherence to Labour lawsMarket-related & performance-based compensationMarket-related & performance-based compensation

Involvement in personal & professional development Involvement in personal & professional development initiativesinitiatives

Comfort at workComfort at workAvailability of tools of tradeAvailability of tools of trade

Interest GroupsInterest Groups ConsultationConsultationSecure & reliable supplySecure & reliable supply

InvolvementInvolvementGood governanceGood governance

International Cooperating International Cooperating PartnersPartners

CollaborationCollaborationEnvironmental issuesEnvironmental issues

In vestment, returns, developmemtIn vestment, returns, developmemt

Quality information & harmonization of regulatory Quality information & harmonization of regulatory principlesprinciples

ZERC CommissionersZERC Commissioners Government support in execution of functionsGovernment support in execution of functionsEquitable compensationEquitable compensation



Viability of ZERC & adherence to ActViability of ZERC & adherence to ActMarket-related & performance-based compensationMarket-related & performance-based compensation



OUR VALUESOUR VALUESBy PROFESSIONALISM:By PROFESSIONALISM:we mean an expert and we mean an expert and ethical approach to regulationethical approach to regulation

By TEAMWORKBy TEAMWORK::we mean: a consultative and we mean: a consultative and participatory process for the achievement of the participatory process for the achievement of the

Commission’s objectives.Commission’s objectives.By ACCOUNTABILITY:By ACCOUNTABILITY:we mean being answerable we mean being answerable for one’s decisions, actions and results in respect of a for one’s decisions, actions and results in respect of a stated responsibility.stated responsibility.By TRANSPARENCYBy TRANSPARENCY::we mean being open, fair and we mean being open, fair and trustworthy with all stakeholders.trustworthy with all stakeholders. By INTEGRITY:By INTEGRITY:we mean conducting business we mean conducting business honestly. honestly.

c)c) Electrification Promotion: Electrification Promotion: Developing regulations Developing regulations and recommending policies tand recommending policies to maximise access to in o maximise access to in

both rural and urban areasboth rural and urban areas

d)d) Tariff Setting Role:Tariff Setting Role: Ensuring the ESI viability and Ensuring the ESI viability and consumer protectionconsumer protection

e)e) Regulation Enforcement Role:Regulation Enforcement Role: To ensure that To ensure that regulation is fair and balanced for licensees, regulation is fair and balanced for licensees,

consumers, investors and other stakeholders in the consumers, investors and other stakeholders in the electricity industry”. electricity industry”.

f)f) Arbitration and Conflict Resolution:Arbitration and Conflict Resolution: Amongst Amongst licensees or licensees and their customerslicensees or licensees and their customers

General Functions of Energy RegulationGeneral Functions of Energy Regulation

• ESI Structure• Investment policies• Pricing policies and tariffs

chargeable by licensees• Development of electricity

regulations and statutory instruments

• Promotion of Energisation• Climate Change and Environment

SYNERGY AREAS WITH Governments

STAKEHOLDERS EXPECTATIONS FROM ZERCSTAKEHOLDERSTAKEHOLDER NEEDSNEEDS EXPECTATIONSEXPECTATIONS

GovernmentGovernment Well structured & vibrant ESI Well structured & vibrant ESI Adherence to Act & policy directionsAdherence to Act & policy directions

ESIESI ViabilityViability Involvement in pricing policy formulationInvolvement in pricing policy formulationAdherence to pricing policyAdherence to pricing policy

Fair & transparent regulationFair & transparent regulation

ConsumersConsumers Security of suppliesSecurity of suppliesAffordable pricesAffordable pricesQuality suppliesQuality supplies

Dispute resolutionDispute resolutionConsumer educationConsumer education

Efficient & reliable serviceEfficient & reliable serviceTransparent & fair pricingTransparent & fair pricing

Consistent quality of suppliesConsistent quality of suppliesFair arbitrationFair arbitration

Information on rights & obligationsInformation on rights & obligations

EmployeesEmployees Job securityJob securityEquitable compensationEquitable compensation



Viability of ZERC & adherence to Labour lawsViability of ZERC & adherence to Labour lawsMarket-related & performance-based compensationMarket-related & performance-based compensation



Interest GroupsInterest Groups ConsultationConsultationSecure & reliable supplySecure & reliable supply

InvolvementInvolvementGood governanceGood governance

International Cooperating International Cooperating PartnersPartners

CollaborationCollaborationEnvironmental issuesEnvironmental issues

In vestment, returns, developmemtIn vestment, returns, developmemt

Quality information & harmonization of regulatory Quality information & harmonization of regulatory principlesprinciples

ZERC CommissionersZERC Commissioners Government support in execution of functionsGovernment support in execution of functionsEquitable compensationEquitable compensation



Viability of ZERC & adherence to ActViability of ZERC & adherence to ActMarket-related & performance-based compensationMarket-related & performance-based compensation



ZERC’s EXPECTATIONS

1. Policies conducive to IPP investments

2. Timeous response to policy enquiries

3. Timely tariff papers considerations

4. Speedier processing of electricity regulations and statutory instruments

5. Retiring ZESA debt

6. Capacitating the Commission

7. Expediting the finalization of power sector reforms outstanding issues:

• (i) Appointment of boards for the successor companies

• (ii)Transfer of assets to successor companies, ring fencing of successor companies

• (iii) Repeal of Electricity Act (13:05)

• Codes and standards to enforce fair and non discriminatory access to power service exist

• Monitoring of electrification performance through license conditions

• Policy studies on sustainable electrification schemes

• Direct funding through excess funding

CONSUMER RIGHT 3: Right of access to electricity in both rural and urban areas

• Standards and procedures for improved consumer safety practices

• Field inspections and enforcement• Creation of health and safety databases• Includes environmental complaints• Consumer education• Special provision for the disabled, elderly

and disadvantaged groups

CONSUMER RIGHT 4: Right to Health and Safety

• Licensing and regulation to ensure that industry delivers services efficiently

• Development and monitoring compliance with codes and standards

• Submission, benchmarking and monitoring of performance

• Audits and inspections• Penalties on non performance that may

include license cancellations• Public dissemination of utility performance

CONSUMER RIGHT 5: Right to efficiency provision of services

• Thorough scrutiny of tariff applications to ensure that inefficiencies are not inbuilt in tariff applications

• Removal of costs resulting from inefficiencies and not related to supply of power

• Prescribing measures to improve efficiency and monitoring implementation

• Involving other stakeholders prior to tariff approvals

CONSUMER RIGHT 6: Right to Fair and Transparent Pricing

Customer education forums aimed among other things at:

Enhancing relationships between electricity utilities and users of electricity.

Information exchange Educating customers on electrical safety issues Customer education on their rights and obligations. Discussion of customer complaints and concerns. Education on complaint handling procedures Understanding the functions of the Commission. Providing insight into the operations of the electricity industry

and the roles of different players. Educating consumers the efficient usage of electrical energy

Periodic publication of relevant utility performance data Requirement for licensees to develop customer education

programmes and monitoring of such programmes

CONSUMER RIGHT 7: Right to information especially but not limited to efficient use of electricity.

Timeously payment of electricity bills;Refraining from theft of electricity;Refraining from illegal electricity connections;Jealously guard infrastructure from being

vandalized – tempering with meters, draining of

oil from transformers, stealing power cables;Observe safety standards when using electricity;Refrain from unsafe connections;Actively be involved in efforts to save electricity.

CONSUMER OBLIGATIONS

Major Energy Challenges Availability and accessibility Sufficiency (lifeline supplies) Reliability and Cost Dimension.

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