The long standing business relationship between the Copperbelt Energy Corporation and ZESCO comes to an end tonight after the expiry of the Bulk Supply Agreement.
Energy Minister Mathew Nkhuwa confirmed that the deal through CEC was suppling bulk electricity to mining companies and residential customers on the Copperbelt expires at midnight tonight.
Mr Nkhuwa told a news briefing in Lusaka on Tuesday afternoon that after seven weeks of negotiations among officials from CEC, ZESCO and the Ministry of Energy, the parties have failed to come up with a new agreement.
He revealed that the main point of disagreement was CEC’s insistence that it needed a 16 years long term agreement while ZESCO was only willing to accept a one-year interim agreement.
Mr. Nkhuwa said ZESCO had preferred to enter into an interim supply contract with CEC as it was awaiting results of the Cost of Service study which only be ready in November.
He said ZESCO therefore cannot commit to long term agreements before the study is concluded as it may have negative implications on its business.
Mr Nkhuwa expressed regret that negotiations for a new agreement had failed.
The Energy Minister assured that Government not allow any threats to the supply of electricity on the Copperbelt.
He said from 00.01 Hours Wednesday morning, ZESCO will take over the supply of electricity to CEC Copperbelt based customers on conditions on ZESCO’s terms as the utility is the true owner of the electricity.
I hope Zesco becomes profitable after this. They will supply power to the mines at a better margin than under the previous arrangement. Since the infrastructure the power will ne routed to the mines belongs to CEC, they of course be hiring it from the owners. CEC can of course choose to sell it to Zesco and move on to other things such as completing their Kabompo hydro-power project.
Not the end of the world for CEC. Life goes on.
“ZESCO’s terms as the utility is the true owner of the electricity” presumes that there was no need for such an arrangement in the first place…..lets see how the true owners of electricity perform
KZ, your defacto president Davies Mwila appointed ministers to conclude Zesco – CES negotiations. This type of incompetence is stressing up the energy supply industry. When we tell you that you need outside expertise to manage national issues, what value does grade 7 failure Mwila add to PF regime? Your boxed environment is a danger to the nation. Is the absent president aware that his authority is being undermined by you in particular.
Where are the team of PF Energy technocrats Davis Mwila and Aunty Dizzy who were going to look into this..really laughable….ZESCO should just be unbundled, I dont think CEC’s clients will take ZESCO seriously as CEC had a contract with ZESCO to supply. I am sure PF vultures are cycling trying to see how much commision CEC was making so they can pocket all of it and ZESCO get nothing we the Zambians lose out.
The company is dominated by sympathisers of a known political party. This company sales electricity it does not own at high price and channels some of its profits to a known opposition party.
CEC is just a middleman. We do not need such middlemen in the supply chain. They should go and start producing their own electricity.
Sad. This is what they just wanted. More job losses and bad management coming to CB
Remember how Zambia Airways died? Watch this CEC debacle in a few years. These politicians driving us into the ground will be gone and buried while you will be celebrating bringing – I don’t know – Eskom or something to revive CEC. Mark my words. History doesn’t repeat itself; fo.ols keep multiplying from generation to generation.
blanc – Apply the same method to Crude Oil procurement …you will see how the elite in the ruling party will object!!
Tarino Orange: Great comment. Why can’t we hv oil majors such as BP or ExxonMobil supply petroleum to Zambia instead of nameless and corrupt middlemen?
I believe CEC will still maintain the supply/transmission contracts with the mines in DRC, albeit they will have to buy power from Zesco. Alternatively, they could have surrendered the supply/transmission contracts over to Zesco. Which ever the case, CEC should still remain profitable seeing they own the transmission network. Zesco being the company that they are will continue with their shoddy work and find something to blame for their failures. We will be. watching.
“He said from 00.01 Hours Wednesday morning, ZESCO will take over the supply of electricity to CEC Copperbelt based customers on conditions on ZESCO’s terms as the utility is the true owner of the electricity.”
“True owner of the electricity”, good Lord gracious, so the minister does not even know what he is talking about or what he ia doing, or both? Muppet of a minister, probably reading a script written for him by Zesco or state house.
For his knowledge the electricity produced is just as important as the tramsmission of it. Electricity can not move from producer to consumer with transmission lines and other transmission equipment. The poor minister stooge, is like saying Saudi Arabia produces the fuel that we use then it must iwn the filling stations in Zambia, or Indeni…
, or Indeni refines the oil and demands to run and own ths filling stations dotted across Zambia. These ignoramases in PF need to be taught the simple basic rules of commence.
Citizen X: But they hv always been buying pwr from Zesco. I don’t see any reason they should be stopped from exporting pwr to Congo-based mines. If wht others are saying is correct, that it’s bcos the company is dominated by Tongas that Zesco was ordered not to renew the bulk pwr supply agreement, that would be the saddest day in Zambia. But given wht they did to stop Costain Chilala getting water rights from a certain river in Mkushi thereby ruining a planned joint venture wth German investors, these claims can’t be ruled out.
, or Indeni refines the oil and demands to run and own ths filling stations dotted across Zambia. These ignoramases in PF need to be taught the simple basic rules of commerce.
I think they don’t like seeing Tongas they fired in Zesco getting jobs in CEC. They want them in streets struggling to survive.
GOOD RIDDANCE TO ONE OF THE BIGGEST SCAMS PERPATRATED AT PRIVATISATION OF ZCCM.
THE FORMER POWER COMPANY WAS ACQUIRED THROUGH A MANAGEMNT BUY OUT BY SOME WILY UNSCRUPULOS MANAGERS.
AND THEY ARE NOW BILLIONAIRES SUPPORTING hh.
ONE HOPES THERE IS NO UNDERHAND ARRANGEMENT THAT WILL CONTINUE TO DISADVANTAGE ZAMBIANS.
ZESCO ON ITS PART SHOULD REDUCE TARRIFS FOR THE LONG-SUFFERING ZAMBIANS NOW THAT THE MIDDLEMAN HAS BEEN SEVERED
Kassala – They are destroying everything and have nothing to show for…. look at the mine they liquidated
So guys there in Kopala do you still have lights after midnight?
No need to disrespect the minister for announcing what is beneficial to many Zambians as opposed to a few fat cats. This business arrangement was a fraud and the real Muppets are the people here that cheered on as the manufacturing sector kept subsidizing CEC
What happens to ordinary Zambians who had bought shares in CEC? What is the future of Power Dynamos?
I have never seen government with such a penchant do destroy indigineously owned businesses. The Post, Prime TV and now CEC. They would rather have Lebanese and Chinese doing businesses in Zambia even illegal businesses. Posterity will judge you harshly.
What happens to my team Power Dynamos now? Oweeeee nemwina Ndeke.
CEC must charge ZESCO if they use their infrastructure to supply electricity. CEC(formerly Power Division) has built extensive infrastructure on the Copperbelt since the KK days.
Nothing is free.
When is the Northwestern Energy agreement getting renewed?
One of our biggest problem is deceipt,we hear rumours and take it as truth with no evidence whatsoever,CEC doesnt have any opposition members on its payroll or majority shareholder.A country cannot be bult on lies.We are still struggling with the Zamtel debt with no money to pay LapGreen how will pay CEC.Weve no reserves to in Central Bank and our currency is in free fall,how can a normal person support such actions with severe repercussions?