The Reserve Bank of Zimbabwe (RBZ) has rejected a proposal by ZESA Holdings for businesses to wholly pay electricity tariffs in United States dollars (USD).
ZESA believes that payment of tariffs in USD will significantly improve the availability of electricity.
However, John Mangudya, the governor of the RBZ, told Business Times that the 100% payment of tariffs in USD as proposed by ZESA was against the government’s policy to align tariff payment with the foreign retention threshold. He said:
ZESA proposed a 100% payment in US$ but industry can only pay in US$ to the extent of their US$ retention for example the exporters can only pay 75% in US$ and the rest in local currency while those US$ domestic sales can pay 85% in US$ and the balance in RTGS.
That’s the policy and we are sticking to that stance.
ZESA currently charges an average of US$0.1221 per kilowatt hour or the Zimbabwe dollar equivalent.
On Friday, 24 February, the Zimbabwe Power Company (ZPC) was generating a total of 511MW against a national demand of around 2 100 MW.
Hwange Thermal Power Station generated a paltry 168MW, Kariba South Hydroelectric Power Station 343MW, while the other three power stations in Harare, Bulawayo, and Munyati respectively were generating zero megawatts.
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