Deadlock in power tariff talks

• Industry seeks govt intervention

LIVINGSTONE MARUFU

 

A meeting between industry and ZESA on power billing in US dollars proved fruitless after the power utility rejected local companies’ proposals, it has emerged.

They are now seeking the intervention of Energy and Power Development Minister, Zhemu Soda.

Business Times can report that in a meeting held a fortnight ago, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a unit of ZESA Holdings, rejected a proposal to have the US$ bills to be matched to the proportion of forex sales.

However, ZETDC insisted on a blanket bill.

Te Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza told Business Times that the ZETDC’s newly announced power tariffs of US12.21c/kWh for all exporters with other forex earners paying US10.63c/kWh is not sustainable.

“Te business community carried out discussions with ZETDC but no agreement was reached hence we have now requested a meeting with the Energy Minister himself.

“So far we haven’t gotten a response on his availability but we wanted to discuss the blanket US$ billing,electricity availability, how the power situation can be addressed, and the bill on forex generation capacity,”Matsheza said.

He said industry wants ZESA US dollar electricity billing to be matched to the proportion of foreign currency sales as businesses have different mixes of local currency and forex earnings.

Previously, most customers paid in Zimbabwe dollar, under a stepped billing system, which entailed that users paid tariffs in line with the amount of electricity used.

Only a few exporters or partial exporters, including miners, paid for electricity in forex.

Te industry was concerned that the tariffff for exporters was way above the regional average of US11.7c/ kWh, as per data from the Southern African Power Pool.

“ZETDC told us the billing in US$ for exporting companies and those who are generating US$ through local sales should pay 100% in forex.

We raised an issue to say these blanket groupings may not be ideal.

“Whilst we understand the need to raise US$, why didn’t they look at the individual customer and say to what extent do you generate US$ sales and bill accordingly,” Matsheza said.

He said if one is an exporter and exports at an extent of 50% that is what must be billed. Also, the local player that generates forex to the tune of 20% should be billed accordingly.

“It is was our view but there was no meeting of minds but were just telling us what they expect us to do. But we also told them what we thought about how the matter could be treated. But, ZETDC could not listen,” Matsheza told Business Times.

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