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Alba Iulia
Thursday, July 2, 2020

CEC Defies Government and Commences The Process to Restrict of Power from KCM

Headlines CEC Defies Government and Commences The Process to Restrict of Power...

Copperbelt Energy Corporation Plc (CEC) has gone ahead with its threat to cut power from Konkola Copper Mines Plc (KCM) for nonpayment of USD144 million. In a statement released to the media, CEC said that it has taken the decision to protect and enforce CEC’s commercial rights as a business and ensure that the Company does not engage in reckless trading.

The Company further said that, as a listed business, it had an obligation to all its shareholders to preserve whatever value is left of its business at this stage and that without this important action, the continuing risks may cause irreparable damage to the business.

Earlier, Energy Minister Mathew Nhkuwa said in a statement that KCM would now get its power directly from state-owned utility Zesco Ltd, which until now has sold electricity to CEC for onward supply to KCM.

Below is CEC full statement

CEC commences KCM power restriction process

Further to our statement of 29 May 2020 on the decision to discontinue power supply to Konkola Copper Mines Plc (KCM) due to there being no contractual basis to provide service, Copperbelt Energy Corporation Plc (CEC) wishes to advise that it has today, 1 June 2020, commenced the process of discontinuing power provision to KCM.

The decision by CEC comes on the back of two critical issues:

CEC currently has no contractual basis to continue providing service to KCM;

KCM’s outstanding indebtedness to CEC of about USD144 million as at end of May 2020 remains without an agreed solution between the parties.

This decision has been taken to protect and enforce CEC’s commercial rights as a business and ensure that the Company does not engage in reckless trading. As a listed business, CEC has an obligation to all its shareholders to preserve whatever value is left of its business at this stage. Without this important action, the continuing risks may cause irreparable damage to the business.

As a responsible business and corporate citizen, CEC will not interfere with or endanger any national assets or those of its customers. CEC’s interest at all times is to ensure that its business and that of its customers operate optimally and to each party’s best interest, having regard for the mutual obligations that underpin commercial business relationships. Therefore, reduction of power, whenever justifiable, is an action of last resort done in a very responsible, well-considered and planned process with the full involvement of the customer, prioritising the safety of personnel and equipment, and leaving the minimum power required for purposes of safeguarding personnel and the mine’s assets.

For further information, contact:
Chama S. Nsabika
Senior Manager Corporate Communication
+260 212 244914
+260 966 792922
[email protected]

[Read 2,516 times, 1 reads today]


  1. What’s the truth of whatever is going on between government, CEC, and ZESCO? Political corruption is manifesting. $144 million is a lot of money. But not compared to the $400 million Zambian politicians have combined in Swiss Bank, Mauritius and Cayman Islands.

  2. This shows how arrogant PF government is. They’re Killing investors confidence by such action.

    Let KCM pay what they owe and government shouldn’t be interfering with such action.

    PF must go!

  3. This is the worst administration ever. They have depleted EVERY revenue stream and now playing hegemonic politics with the private sector. What did we REALLY do wrong to get this bunch of losers?

  4. Where ever PF get involved, just know there is corruption and looting to enrich themselves and pay their unemployed cader thugs who they need for violence against any critics

    …..PF and lungu need millions to bribe their thugs.

    What was that PF meeting with this company about recently. ?

  5. PF is not done with Zambians yet.
    The cup of their iniquities is not yet full. By the time they are done with Zambians, there will be nothing left for Zambians. PF is working for themselves with the help of Rogue Foreign elements. This CEC mess will end like the Clive Chirwa case where the Tax Payer will consigned to a lifetime of Slavery paying PF US Dollar debts!

  6. The bribing of PF cader thugs is a very bitter pill for lungu to be continuously swallowing every month , it is a noose around his neck.

    Instead of creating jobs for youth , PF gives cash handouts and free reign to these thugs to extort the public like at bus stops and markets , where possible the PF need whole companies or mineral resources to be bled to pay for their expensive habit of bribing unemployed thugs they need for violence

  7. CEC Management, if you have care about yourselves and those under you, just do what these people are telling you to do. Otherwise, you will all be fired and replaced with cadres.

    These people do not care about the future of anything. I know you are trying to be professional and do everything by the book but you have already positioned yourselves to be fired. Just wait for official notification.

  8. Well within CEC rights.
    But we also lnow what is playing here. PF believe that CEC is a source of funding for opposition. So they have trying to arm twist them to do their bidding.
    I already said, pf will destroy everything to stay in power. They only listen to the chinese who are their true masters!
    Zambia has been sold to the chinese so zambian interests dont matter. Only chinese businesses will flourish.

  9. CEC wants to armtwist GRZ into having ZESCO give them power at a lower fee. Problem is they are defying an SI which will bring problems for them. The SI allows CEC to charge for using their grid but it’s the “cheap” power they want. Brace yourselves CEC, KCM is a strategic asset for the nation and Zambians and GRZ will come down hard on you!!

  10. Diasporan donkeys and dingbats don’t seem to understand this issue. This is not about PF and CEC, it’s about putting things in order. Maamba came to Zambia and set up a power plant which churns out 300mw and they can choose who to supply. CEC has no generation capacity except a piece of paper that allowed them to get below cost power from ZESCO and re-route it to the mines. ZESCO generates, transmits (another huge cost which both Maamba and CEC avoided!!), CEC inherited a grid from ZCCM and merely upgraded it. Which normal patriot would support such a rip off??? Only a upnd donkey…

  11. The thousands of unemployed youth PF use to enforce violence on opponents are like drug addicts, only they are addicted to free cash handouts from lungus PF.
    That is why PF need to bleed whole companies and other minerals like the discovered gold to pay for this addiction.
    Funds crucial for normal running of institutions like councils is diverted to pay these thugs…..some are left to form cartels to hold the public at ransom in markets and bus stops.

    These thugs are the biggest threat to lungu…….the days when there is no more companies to bleed and not enough minerals for bribes is approaching and a time bomb is set

  12. It’s a commercial relationship. CEC directors would be liable for negligence under the Companies Act if they continue to supply electric power to a defaulting customer.

  13. Zambian Citizen

    Stop trying to use your PF mugabe propaganda…….CEF has done a lot of work on their transmission grid

    …..let ZESCO build their own grid since they have a monopoly country wide ……but because ZESCO is a failed PF cash cow running broke , ZESCO can not build anything without borrowing
    PF need to other sources of income that is why they are pouncing on CEF

  14. KCM hasn’t stopped production, so what must be at the center of the discussions is a payment plan not arm twisting. $143M is a lot of money. Another legacy that the PF will leave making decisions without consultation. If Matthew Nkhuwa doesn’t keep his, he’ll cost Govt a lot of money, far much more than he’s trying to save. KCM must propose how they intend to liquidate the debt, that’s the way forward

  15. Its interesting that government is silent on the USD 144 million.
    CEC are well within their rights to demand payment. And they are well within their rights to restrict power. This is how business goes. You cant give a free service in business.
    Pf want CEC to continue supplying power to KCM despite this huge debt, and they want to use the bulk power supply agreement as a bargaining chip.
    I wonder if its because they want to give kcm to the chinese and so they want to reduce the KCM liabilities so that the chinese can take over a debt free operation.

  16. @Zambian Citizen – So people who live outside are incapable of being objective and critical?
    The very primice of your statement makes the rest of and any statement irrational and vain. It lacks objectivity. If your intent is to make a point. State your point, and back it up with facts.
    You are critical about CEC being vain in collecting their hard earned money, but dont question the “arm twisting” tactics that Maamba(an un listed private company foreign owned entity) that turned power off for months in order to collect its debt from Zesco, a public institution that was forced to sign the Zesco/Maamba agreement. This agreements forced Zesco to buy power at a cost higher than the tariff it charges to its Consumer. And you expect Zesco to be a viable entity?
    What you should be…

  17. @Mbuzi: The money owed was a debt generated by the vedanta management. Not that it shouldn’t be paid, ut it is a matter of both parties sitting down and agreeing on how the payments will be broken down. A lot of companies owed CEC and ZESCO and these agreements are common. Defying SIs and switching off power to a national company will only attract problems, trust me.

  18. Spaka chikopo-CEC has distribution lines, which power plant do they TRANSMIT power from??? Even Maamba rely on the ZESCO transmition lines to sell their power to Zambians. Use your head to research, not following hh’s rhetoric on social media as gospel truth, useless donkey!!!

  19. Zambian citizen

    I said ……

    ” Stop trying to use your PF mugabe propaganda…….CEF has done a lot of work on their transmission grid…”

    Who told you a transmission grid is a power plant ??? Ndiwe mbulee manigee iwe…..

    CEF own a grid , they have upgraded , they can buy power to transmit from any one they want…….and broke zesco the PF cash cow needs money and is now being greedy…..

  20. Economic sabotage, under KK, the author of this letter would be in mukobeko as we speak. I miss those days. Even cowards that insult leaders carelessly would be doing something more sensible for society and themselves.

  21. The reason Matthew Nkhuwa is silent about the US$143M is that there’s a free-for-all at KCM. There’s Mwisho nafimwenendo? Now PF cadres have found themselves on the suppliers’ and contractors’ roll and they’re being paid handsomely. So the liquidator can’t discuss the payment plan for the debt owed to CEC. By the time he leaves KCM there’ll be a huge hole in the Books that’ll cause the next owner to fail to resuscitate the mine. All new suppliers and contractors that have been enrolled since the liquidator took over are potential suspects

  22. The responses to this are daft. Why do opposition cadres just yap, yap with no logic?

    This has nothing to do with PF. The Investor has not paid his electricity usage to the tune of USD144M! This opens up the question on PRIVATISATION being a FAILED strategy. This calls for NATIONALISATION of our Mines. All we the ordinary people are seeing is the use of our resources to support Private businesses to prioritise their shareholders over the interest of the ordinary citizens. The private sector is being disruptive and preventing the govt from collecting public share towards GDP. And they are not carrying out their promise to create jobs for locals since they have shut down. This is not acceptable. NATIONALISE.

  23. @Sungwe, I agree with you. KK was proactive. None of this would be happening!

  24. Is paying what you owe so painful for Africans? is this why the African continent will never develop because of greed

  25. All the new SI does is to commercialize CEC distribution lines to the mines so that ZESCO can use them to supply power to the mines but they still have to pay CEC for using their distribution system. CEC still has the final say on how much to charge any power company to use their lines which might make cost of power even more expensive than what it was before.

  26. The fact of the matter is that CEC owns the transmission and connection infrastructure through which ZESCO supplied it’s power to KCM. They allowed this absurd arrangement to exist for years. ZESCO should have had it’s own such infrastructure by now to supply everyone directly. The minister’s regulation is in essence an attempt to ‘take over’ or ‘nationalise’ the property of CEC. Whether that has been pursued legally, is another matter. At the end of the day, this is another mess. These discussions should have been held long before the PF declared that they were ending the contract ‘come what may’, on the 31st of March.

  27. Hey ya’ll! Exsay what’s the altercation about?
    If KCM is Zambian, CEC is Zambian and Zesco is Zambian, what’s the fuss about.
    Get over it niggaz.
    If CEC is not owned 100% by Zambians, I won’t weep over them.
    If KCM is likewise, I care less.
    Zesco needs to account for the Eurobond funding.
    Nkhuwa has failed in the energy sector. This is not a secret.
    At least stop the loadshedding bullwaste.
    Come on guyz!

  28. With Chagwa and his PF, the rate of incompetent fresh affronts has often outpaced the capacity to digest – or even describe – them. Just trying to keep pace in itself is exhausting, Zambia is all at sea out there! Next time someone aspires for office without a vision, know they’re a kleptomaniac incompetent, RUN!

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