CFTC orders Blantyre Water Board to stop engaging in unfair trading practices

The Competition and Fair Trading Commission has ordered Blantyre Water Board to cease and desist from engaging in prohibited unfair trading practices. This follows investigations the Commission conducted which established that the company engaged in unconscionable conduct by implementing a deliberate policy of delayed reconnection of water supply.

Under the policy, water consumers whose supply was disconnected due to non-payment of outstanding bills are only reconnected after three days upon payment of outstanding balance and a penalty.

Charlotte Wezi Malonda, Executive Director of the Competition and Fair Trading Commission said Blantyre Water Board is prohibited by law from unreasonably delaying reconnection of water supply.

“The prolonged refusal to reconnect water supply to consumers even after the outstanding sum and penalty have been settled, amounts to arbitrary deprivation of an essential service to life and unconscionable conduct. This is the harshest punishment that a consumer can bear. This is not only unfair, oppressive and without conscience, it also amounts to gross abuse of the Company’s status as a monopoly.

“Blantyre Water Board failed to demonstrate any efficiency gains from the new policy of delayed reconnection except subjecting consumers to further embarrassment. 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”, said Malonda.

Further, the Commission has ordered Blantyre Water Board to issue a press release on radio and newspapers announcing the withdrawal of the offending policy. Failure to comply with these orders within the stipulated 7 day period could result in criminal prosecution.

Notes for Editors

1. CFTC launched investigations against Blantyre Water Board on its own volition using powers vested under Section 8(2)(a) of the Competition and Fair Trading Act.
2. Under Section 43 (1)(g) of the Competition and Fair Trading Act, it is an offence for business entities to engage in unfair trading practices.
3. Failure to comply with the Commission’s orders shall result in criminal prosecution in accordance with Section 50 and 51 of the Act.

Contacts for this Press Release

Lewis Kulisewa
Tel: +2651772838
Mob: +265997933727
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