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ZETDC was responding to concerns raised over the installation of prepaid street light meters by authorities at the Municipality of Chitungwiza, who described it as abrupt.
Meters were initially loaded with starter units, 50 for single-phase and 200 for three-phase connections, councils allegedly neglected subsequent top ups.
In a statement, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) - a subsidiary of Zesa Holdings - said the fire damaged critical equipment at the facility.
Local Government and Public Works minister Daniel Garwe announced the proposed plan involving outsourcing water management and supply in major cities to private companies.
Lands, Agriculture, Fisheries, Water and Rural Development minister Anxious Masuka emphasised that the expansion is critical for national food security and economic stability.