The Copperbelt Energy Corporation has confirmed that that the power purchase agreement it entered into with ZESCO on 21 November 1997 is expected to come to an end on 31 March 2020 and will not be renewed.
According to a company notice to shareholders, CEC says the Zambian government through the Minister of Energy Mathew Nkhuwa and ZESCO have notified CEC of their position that the BSA will expire on the date stated above and will not be renewed.
“In accordance with Section 81(1) of the Securities Act No. 41 of 2016, the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company”) advises the Company’s shareholders, and the market, that the power purchase agreement or Bulk Supply Agreement (“BSA”) between CEC and ZESCO Limited (“ZESCO”), entered into on 21 November 1997 is expected to come to an end on 31 March 2020,” says CEC Company Secretary Julia Chaila.
“The Government of the Republic of Zambia (“GRZ”), through the Minister of Energy, and ZESCO have notified CEC of their position that the BSA will expire on the date stated above and will not be renewed.”
Ms Chaila added that CEC will, in the meantime, continue working closely with both the Government and ZESCO with the aim of arriving at a mutually acceptable solution post the BSA.
“GRZ and ZESCO have expressed to CEC their commitment to continue facilitating an efficient and economic supply of power to consumers on the Copperbelt both during the validity of and post the BSA,” she said.
“CEC wishes to emphasise its unwavering commitment to use its infrastructure and capabilities in ensuring continued and seamless supply of power to all consumers on the Copperbelt now and after the BSA.”
Yaba
PF will not be renewed on the CB too.
This is bad for Power Dynamos Fc, they just started winning games under new coaches, and brought in good players like Mukula Mulenga, but Zesco close their source of income. PF mean total distraction.
THE STATEMENT IS HALF-BAKED.
WHILE THE MOVE TO CUT THE MIDDLEMAN CEC IS WELCOME AND LONG OVERDUE, IT HAS NOT BEEN EXPLAINED IF ZESCO WILL HAVE THE INFRASRUCTURE AND LOGISTICS FOR POWER DISTRIBUTION TO THE MINING COMPANIES WHOM CEC HAS BEEN SERVING.
OFCOURSE GRZ CAN ALWAYS, AND SHOULD, GERRYMANDER THE CEC RESOURCES THROUGH AN ACT OF PARLIAMENT. THE WOLVES AT CEC WILL CRY FOUL BUT THEY ARE NOW LITERALLY BILLIONAIRES WHO HAVE BEEN EARNING UNDESERVED WEALTH (THE FORMER TOP MANAGERS AT THE ZCCM POWER COMPANY STAGED DAYLIGHT ROBBERY BY AWARDING THEMSELVES A MANAGEMENT BUYOUT (OR ROBOUT!!)
ZESCO SHOULD THEN USE THE NEW RESOURCES FROM THE MINES PRUDENTLY AND REDUCE THE TARRIFS BURDEN ON THE GENERAL CONSUMERS. OR, WIIL THE MANAGERS ALSO AWARD THEMSELVES MORE PERKS AND FRINGE BENEFITS?
MEANT: GRZ CAN ALWAYS, AND SHOULD, REQUISITION THE CEC RESOURCES THROUGH AN ACT OF PARLIAMENT
Non renewal of BSA agreement will play havoc on Larry Sikutwa and HAKAINDE Hichilema as companies linked to them like Madison insurance group ( which owes millions of Kwacha to policyholders, depositors and reinsurers) and the whole group is insolvent, Africa Life insurance and Africa Life Pensions, again both are insolvent and conduits to externalise millions of Kwacha every year disguised as reinsurance and fees are insolvent and Bel NG to Hakai de HICHILEMA.
Both groups and financing cadres of UPND are heavily invested in CEC. Is this PF scheme to finish off the sources of UPND and malign HAKAIBDE?
Is Zesco taking over CEC? I can see the mining companies bidding for CEC. A fold up of the company would send instability msg to the industry. The government should be more clear than this
Excellent move, and long overdue.
Cut out the MIDDLEMAN (CEC).
This fragmentation added to the cost of power to end users.
Were your tarrifs not the same as any other in Lusaka or elsewhere? .Electricity tarrifs are set by ERB and the whole country pays the same depending on class of consumer .Are you just shooting for the sake of shooting or speaking out of ignorance ?
HOW ABOUT MIDDLE MEN IN THE FUEL SUPPLY CHAIN THAT CAUSES THE COST OF FUEL TO CONTINUE BEING EXPENSIVE IN THE REGION.
ALSO GET RIDE OF MIDDLEMEN IN OUR VOTING SYSTEM, WE ARE TIRED OF UNFREE AND UNFAIR ERACTIONS.
ZAFICO,ZESCO,MUKULA, 48 HOUSES,FIRE FIGHTER NOW IT IS CEC…….mmmmmm stop those false stories we are fade up baba talk about the solutions to our challenges than bra bra bra imwe alalalalalalalal
@Buldeo Do you know that CEC owns the infrastructure used by ZESCO to transport electric power through the all Zambia and beyond? Unless ZESCO is magically going to build a power grid structure between now and March 2020 then you cannot cut out the middle man. Unless ZESCO will be supplying electricity mufikopo! This is kawaya kwaya political talk, watch this space. Come March the kawaya wayafye ministry will agree some deal.
@Caleco: investors come all the way from USA to upgrade tuma distribution lines, get below cost power and make a fat mark up and ship it back to USA INSTEAD of setting up a generation plant??? Be reasonable, please. If ZESCO generate the power, let them transmit and distribute, if Maamba generate, let them distribute. With ZESCO doing everything, all the dollars Mopani, FQM etc will pay stay in Zambia!!
@Caleco. It is only the transmission lines on the copperbelt and the interconnector to the DRC. The transmission line from Kariba Dam to the Copperbelt was definitely constructed by CAPCO, Central African Power Corporation, which now belongs to ZESCO. Maybe this will make them (CEC) expedite the construction of their own 40 MW Kabompo Hydro.
Fixing Charles Milupi?
I wonder what the advantages are to ZESCO. Does it have means of transmission and distribution on the Copperbelt?
This company is wholly owned by Zambians as it is on Lusaka Stock Exchange, it’s by miles more efficient than PF cash cow (Zesco). Ladies and gentlemen, what kind of a country is this? were politicians with literally no financial knowledge and qualifications make such decisions. It will be interesting to check what Zesco pay to ZRA in comparison to CEC, as citizens we need to demand for this information. Journalists, please help us with this information, we have got a lot of men who value credibility and they will supply this information. Time has come when we should document these decisions so that the moment they are thrown out of office we start taking them to court.
It’s easy for a Chinese to make millions in Zambia than a Zambian to make hundreds of dollars.
Cec buys at dirt cheap from zesco and then sells at exorbitant profit to nines. Cec is the cause of making zesco bleed.
@Zambian Citizen CEC as stated above is owned by Zambians and most of the profits stay local. We need to remember that CEC used to be ZCCM Power Distribution before it was sold off. The issue here is Zesco will not be able to distribute power as the deal they have with CEC is CEC gets cheaper electric, allows ZESCO to use the grid on top of that CEC maintains the grid. The issue with ZESCO is its owned by the Zambian tax payer therefore controlled by Gvt. Any form of investment by ZESCO has to be agreed by govt, which is always political. CEC is private and we need such companies, they pay on time and do rely of govt to release funds. I have worked for both ZESCO and CEC and what I can tell you is, if we are looking for dev lot at the investment CEC puts into electricity and how quickly…
There’s the Singaporean shareholder and other foreign ones. When Maamba came on the scene, they went for generation not distribution. CEC being the first private power company should have set up generation plants first, relying on a power agreement is wrong. ZESCO generates and transmits. It was a poorly done agreement which has come back to haunt them. Maamba today is a preferred partner because they generate. ZESCO empowers a lot of Zambians.
Zambian Citizen. Before ZESCO and Kariba Dam, each mine, used to run its own thermal power plant at Roan Antelope, Nchanga, Rhokana and Mufulira. In 1953 the Anglo American Corporation and Rhodesia Selection Trust formed a company, Rhodesia Congo Border Power Company to run the four thermal power plants which were now interconnected and constructed a line to a Congolese power station to augment the power supply. The mines also contributed 20 million pounds towards the construction of Kariba. The mines were nationalised together with its power company. During privatization instead of keeping ZESCO which the government was not selling together with the ZCCM power division the privatization team (HH) decided to sell ZCCM and the power division separately. Today there would have been no…
Today there would have been no problem if the power division of ZCCM had been part of ZESCO instead of selling it.
The power division of ZCCM is what is CEC. The names of CEC: In 1953, Rhodesia Congo Border Power Company, in 1964 at independence, it became Copperbelt Power Company, when the mines were nationalized, Power Division of ZCCM, and it became CEC when the mines were sold.
How main companies have been forced to cease operations under PF administration? we’re not being helped in anyway .
Name them…..
PF Ni dununa ruveci!!!
Only Zambian citizen sees sense in this chipante pante government. All our companies are failing under their watch, they need to be chucked out before they destroy everything. They make drunk decisions without much thought
Ule landako ifya mano, makaka iwe!!
The extract below is from an article on CEC’s investment in Solar Energy near CBU.
“BayWa r.e. will run a training programme for engineers, entrepreneurs and lecturers. The intention being that ultimately stakeholders in Zambia can set up similar projects independently in the future and drive the energy revolution in the country.”
The company will come and install, then stay for a year to educate the masses on running such a project. Then after a year will leave so that Zambians can take over. This is what we need, someone willing to bring the project and willing to educate us on how to run it and hopefully cause us hopefuls to develop our own. If this is the type of model CEC has, then damn am voting for then for president in 2021.
Senior citizen, how old are you. your comments sound like someone who has no deep knowledge on subject matter and was born after 1990. I am not trying to do a character assassination but….
Last nail in the economy….bushe finangwa ifyashani ifi fi PF?
Pantu fimo ifinangwa twaishibe fyalekwatako utumano nangu utunini fye pakuti ifintu tafi onaike nangu fyalufyanya. Nomba fi PF ku onaulafye. Katwishi ukotuleya nefinangwa ifi twa iletelela fwebene..
It is normal for agreements to come to an end mutually. Nothing sinister. As stated we will continue to work closely with CEEC to find a way forward that works. Why don’t our friends in opposition offer their views and solutions rather than just criticising everything. It shows the lack of respect of most opposition. Lungu and pf are the fathers of the nation. So are you people saying you criticise your parents and call them corrupt whenever they make a decision for your benefit? As an experienced strategist who has won elections, am advising you that you won’t win a single election with that type of behaviour and mentality. Grow up. Kz
Last n.ail in the eco.nomy….bu.she fina.ngwa ify.ash.ani if.i fi P.F?
Pan.tu fimo ifi.nan.gwa twa.ishibe fyal.ekwat.ako utum.ano nangu utu.ni.ni fye pakuti ifi.ntu tafi onai.ke nangu fya.lufy.anya. Nom.ba fi P.F ku ona.ulafye. Kat.wishi ukot.uleya nefi.nang.wa ifi twa ile.tele.la fweb.ene..
Fixing milupi won’t help this govt achieve anything sinister,cec owns all the infrastructure. Moreover if this is not handled very well the mining hub of Zambia stands to lose out .The PF govt needs to be consistent with their policys of ensuring that such companies are maintained despite them being wholly owned by govt and the public.