The end of the bitter war over the future of the Bulk Supply Agreement which expired last month, Zesco and Copperbelt Energy Corporation have commenced the process of arbitration with the hope of settling their deep-rooted differences.
At the end of March, Zesco proceeded to terminate its Bulk Supply Agreement with CEC over a tariff dispute, effectively ending a 20-year business relationship.
But in a notice to Shareholders, CEC says arbitration matter with Zesco is in process and remains under adjudication.
“Shareholders are referred to the cautionary announcement, dated 27th September 2019, issued by the Board of Directors of CEC informing the market that CEC was in receipt of a notice of intention to arbitrate from Zesco Limited, pursuant to the Bulk Supply Agreement and Article 3 of the UNCITRAL Arbitration Rules 1976, resulting from ZESCO’s claim that CEC has failed to pay money due to them for electricity supplied under the BSA,” the notice read.
” The amounts outstanding relate to the supply of power by CEC to Konkola Copper Mines Plc. Zesco’s other cited ground is its disagreement with a statement in CEC’s 2018 annual report relating to the contingent liability arising from the 2014 Energy Regulation Board electricity tariff increase specific to the mining companies, which the mining customers have legally contested and were granted a Court injunction, pending the determination of the matter by the High Court for Zambia.”
And there is still load shedding not so?
Just wondering why PF didn’t send their robbers Mosho to “liquidate” Power Dynamos sponsors.
Yes, where is Mosio, the dreaded one? He finish liquidate all company not aligned to pf?
CEC are a very professional running company. And because of that, they are seen as opposed to pf who want to cut deals and introduce other corrupt practices. But because they have failed to manipulate CEC they are now trying to fix them using ZESCO. This is what corrupt governments always do. We saw it with RB when he closed Zambian Airways simply because it was owned by Mutembo. We saw it with Lungu closing down the post, and recently Prime TV. Now we are seeing it with CEC. Pf are happy to close down local businesses for political reasons, but support and give contracts to chinese companies which give them bribes. They are the biggest killers of local businesses
Why didn’t CEC build plants to generate electricity rather than depend on these bulk supply agreements?? Bad planning. You chewed and the plate has been swiped away. Well done PF.
Sadly there will always be those for whom political ends and accumilating unjust wealth will always matter more than the good of the country or doing what is right. For them, as long as their political ends are met, they dont care how many jobs will be lost or how many families will be affected.
But there might be more underneath this. The chinese debt trap is tightening its claws around Zambia. Very soon major assets will be handed over to china.
Those supporting CEC are just exposing their failure to appreciate the cost of producing electricity in Zambia. How really for real to want a contract with terms of over 20 years to be carried over? How much was bread 20 years ago in USA or UK? Is it still selling at the same price? Ofcourse not. Is it a crime for our government to just ask CEC to pay a reflective and reasonable price for the power? Please let us avoid politicising everything.