The Reserve Bank of Zimbabwe (RBZ) has given permission to ZESA to bill the country’s biggest energy consumers – the Intensive Energy Users Group (IEUG) – in foreign currency to enable the power utility to raise cash to import electricity.
ZESA imports power from Mozambique’s Electricidade de Moçambique and Hydro Cahora Bassa, ESKOM of South Africa and Zambia’s ZESCO to augment local supplies.
The Sunday Mail reported a source as saying the exporters have been allowed to pay for electricity in foreign currency. Said the source:
There is an intensive energy user group; it’s a group of exporters.
They have been allowed to pay for power in foreign currency and have that bill deducted from exports.
This will allow power to be priced in forex, to be paid in forex and to be paid in a jurisdiction where there is no foreign exchange control restriction.
Because of the shortage of power, we are now working together; exporters are ring-fencing the money.
All the exporting companies (members of IEUG) are now being made to pay for their power in foreign currency, but, at the same time, they will be assured of supply.
In return, the exporters said if there is no power, ZESA should import to supply us.
RBZ governor John Mangudya confirmed the arrangement but did not give details.
IEUG chairperson Eddie Cross also confirmed the arrangement. He said:
Yes, we got it. We got the authority to trade in US dollars and for members of the IEUG to pay for power from their export earnings prior to liquidation.
The current membership needs about 500MW, which is close to 30 per cent of the national demand. But the applications are still coming in.
We initially started with 70 companies and we are now getting many other companies applying for this.