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Alba Iulia
Wednesday, August 5, 2020

Government backs CEC over power dispute with mines

Economy Government backs CEC over power dispute with mines

Minister of Energy David Mabumba
Minister of Energy David Mabumba

Energy Minister David Mabumba has urged some mining companies not to use blackmail in the matter in which Copperbelt Energy Corporation is restricting power supplies to firms that have refused to pay higher electricity tariffs.

Some mining companies such as Mopani have suspended some operations and sent some workers home after CEC started restricting power supplies after the mining companies refused to pay cost reflective tariffs.

ZESCO has decided to effect a new interim tariff for mining companies backdated to 1st January 2017 but some mining companies including Mopani, Kalumbila and Kansanshi have refused to adhere to the tariff changes.

But Mr Mabumba told a media briefing in Lusaka today that it is unjustifiable for some mining companies to remain adamant and refuse to pay the new tariffs.

He said Government and domestic consumers have for a long time being subsidising the power consumption needs of the mining industry.

Mr Mabumba stressed that the time for power subsidies is gone because ZESCO requires funds for reinvestment in new projects.

He also warned that sending away miners and closing some operations is tantamount to blackmail and that Government will not tolerate such coming from mining companies.

Mr Mabumba has since advised all mining companies to pay enough money if they want full power restored to their operations.

He said CEC will continue to restrict supply if the mining companies do not pay up the full amounts for their power.

13 COMMENTS

  1. Thank you Mr Minister, I was going to be utterly dissapointed if Govt had sided with the mining companies on this one. These MNC’s need to know that they are not in this country to do us a favour, they are here for business, so is CEC. They simply have to pay. Ne tarrifs are justified.

  2. Maybe it could be that the new tariffs make it uneconomical for the mines to continue operating at full capacity, so downsizing operations and laying off staff sounds like a reasonable option for them to take. They are private companies with a profit maximisation objective…we should never lose sight of that. Sounds like businesses and not blackmailing of government.

    • Man you are one of them…we know you. If you are not interested in mining in Zambia please hand over the mines to the Govenment and we will look for serious investors . You think Zambians are dull and dont know business.??? Just pay for electricity in the same manner poor Zambians are doing??

  3. Now that is my energy minister. President Lungu has scored a first by being business minded. The time for black mail is long gone.

  4. Great move, dont allow these thieves to continue using electricity for free as if they are not in business. If they cant run the mines let them hand them over to Government en route to serious investors. Poor Zambians pay cost reflective prices of electricity. Why cant a company making big money not pay?? Please dont listen to these thieves.

  5. This is what I expected a responsible governement to do. But I may be wrong because “Dununa-reverse-policy ” might just kick in resulting in the decision by the minister being reversed. Let’s wait and see…

  6. I just look out for roobish comments by UPNDonkeys. Fortunately there is only one so far. Please Donkeys shut up before you post!……..kikikikikikiki

Comments are closed.

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