ZESA Holdings said it incurred exchange losses of approximately $4 billion since February when the Reserve Bank of Zimbabwe (RBZ) liberalised the exchange rate.
Appearing before the Parliamentary Portfolio Committee on Energy and Power Development on Thursday, ZESA acting managing director Milton Munodawafa said:
In an environment where we have instability in terms of the exchange rate, you can imagine what is happening to Zesa.
We have proposed for a review of tariffs and our tariffs should have an adjustment formula that will kick in whenever we have fiscal variables like the exchange rate.
Each time there is movement, we experience exchange losses and right now, we have exchange losses amounting to $4 billion, so the figures that I expect to see at the end of this financial year are horrendous.
… people who owed Zesa when the exchange rate was 1:1 are paying using the Zim dollar. We were owed US$1,2 billion by our customers when the exchange rate was introduced.
Munodawafa said that the country’s power utility intends to review electricity tariffs after every quarter (three months).