Unconscionable conduct by Blantyre Water Board
On its own volition, the Commission launched investigations into alleged unfair trading practices by Blantyre Water Board. This followed the implementation by Blantyre Water Board of a new policy of delayed reconnection whereby water consumers whose supply was disconnected due to non-payment of outstanding bills would only be reconnected after three days despite payment of the outstanding balance and penalty.
During investigations, Blantyre Water Board failed to demonstrate any efficiency gains from the new policy of delayed reconnection except subjecting consumers to further embarrassment. The Commission noted that as a public monopoly with excessive market power, the Board has a special responsibility to ensure fair trade by being fair and extra sensitive to consumers. This special responsibility includes fairness in its dealings bearing in mind that the people it serves have no other alternatives.
In view of this, the Commission held that the prolonged refusal to reconnect water supply to consumers even after the outstanding sum and penalty have been settled amounted to arbitrary deprivation of an essential service to life and unconscionable conduct. This was not only unfair, oppressive and without conscience, it also amounted to gross abuse of the company’s status as a monopoly.
As such, Blantyre Water Board was ordered to cease and desist from engaging in unfair trading practices. The Board was also ordered to issue a public notice announcing the withdrawal of the offending policy.