The Sunday News
Thandeka Matebesi, Business Reporter
THE Zimbabwe Energy Regulatory Authority (Zera) has stepped up efforts to amend the Petroleum Act as it moves to tighten penalties for illegal possession of and dealing in petroleum products.
The amendment comes after Zera had identified loopholes in the existing legislation which needed to be addressed through revision of some of the provisions. Zera acting chief executive officer, Mr Eddington Mazambani, said the energy regulatory body was in the process of carrying out stakeholder consultations on the preliminary document.
“The draft amendment to the Petroleum Act was done and Zera is now carrying out stakeholder consultations,” said Mr Mazambani.
The amendment to the Act is expected to address issues like levels of fines and penalties among other things. The existing legislation provides for the establishment of the Petroleum Regulatory Authority whose function is to license and regulate operations in the petroleum industry. He also said the number of fuel stations fined for operating without valid licences had dropped last year by nine from the 22 recorded in 2017 as Zera descends on illegal fuel dealers. Mr Mazambani urged those wishing to get into the fuel industry to use proper channels when obtaining their licences.
“A total of 13 garages were prosecuted and convicted of operating without licences in 2018. Zera is mandated to issue licences for investors who are keen to venture into the electricity and petroleum sub-sectors. Licence application requirements and fees are available on the website and also at Zera offices. The licencing process is transparent and for the mutual benefit of energy players and consumers,” he said.
All licences are valid for a period of one year after which the licence may be renewed subject to satisfying periodic audits conducted by Zera.
Zera has been on record saying it does not allow energy retail operators to operate without licences.
Meanwhile, the energy regulatory body also indicated that licencing fees for retailers in the petroleum industry remain unchanged. “The retail license fee is $575 (urban) and $230 (rural) inclusive of Value Added Tax (VAT).”
