RBZ gives ZESA go ahead to charge in forex
The Reserve Bank of Zimbabwe has given power utility, ZESA, the green light to start charging exporters in foreign currency.
Through Statutory Instrument 131 of 2022, the central bank said ZESA can now bill exporters of goods and services in dollars, euros and other foreign currencies at the international cross rate.
Exporters that will be affected by the new regulations are those that export on average 80 percent or more per quarter of total output of goods or services produced or provided in Zimbabwe, for which it lawfully receives any foreign currency.
The regulations will also affect partial exporters, described under SI 131 or 2022 as those that export on average less than 80 percent per quarter of its total output of goods or services produced or provided by it in Zimbabwe, for which it lawfully receives any foreign currency.
However, ZESA shall not bill exporter to the extent of more 35 percent of the electricity supplied by ZESA to the partial exporter with the balance settled in Zimbabwean dollar at the prevailing interbank rate published by the Reserve Bank at the date of payment.
Exporters can however opt to pay for the electricity consumed in whole in United States dollars, or Euros.
According to SI 131 of 2022, an exporter or partial exporter shall pay for the supply of electricity supplied by ZESA from its export proceeds deposited in a foreign currency account operated by it, as may be permitted by the Reserve Bank of Zimbabwe after retentions have been applied.
The new regulations also allow for exporters to pay in advance for the supply of electricity by ZESA in foreign currency.
The power utility is however prohibited from making any withdrawals or payments from any foreign currency accounts without prior written approval of the Minister responsible for Finance and Economic Development and the Minister responsible for Energy and Power Development.
The funds will also be restricted to the purchasing of electricity outside Zimbabwe; importation of spare parts, critical assets and components needed to maintain the local generation, transmission, distribution and retail infrastructure of electricity network to ensure sustainable supply; payment of external insurance for critical infrastructure and external loan repayments.
“This order shall cease to have effect in relations to exporters and partial exporters who are residents of Zimbabwe six months after it is published, unless earlier renewed for a period not exceeding six months,” reads part of SI 131 of 2022.