Friday, March 29, 2024

EAZ defends ZESCO’s Move on CEC deal

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The Economic Association of Zambia (EAZ) has defended the move by ZESCO to terminate the Bulk Supply Agreement with Copperbelt Energy Corporation , CEC.

Copperbelt EAZ Chairperson, Matthews Muyembe, who is also EAZ Chairperson for Energy says ZESCO has incurred huge loses in excess of half a billion dollars due to the Bulk Supply Agreement with CEC.

According to a statement issued told ZNBC News, Mr Muyembe said the Agreement was unfair to ZESCO by providing power supply exclusivity on the Copperbelt to CEC which neglected investment in infrastructure.

He said a result of this exclusivity, ZESCO constructed a new substation at its own cost to supply the Chambeshi Economic zone,but was later fined and had to pay 10 million Dollars to CEC because ZESCO had stepped on its turf.

The Association also notes that ZESCO has spent in excess of 100 million dollars in rehabilitating and expanding the Distribution Network on the Copperbelt for retail customers that was left in a dilapidated state from the year 2000, the cost which should
ave been borne by CEC.

He said ZESCO had to pay CEC close to 12 million dollars annually, to transmit it’s own power meant for supply to Copperbelt retail consumers sitting behind the CEC owned infrastructure.

The Economics Association of Zambia further argues that CEC was not transparent on metering as they failed to provide access to its meters or metering data to show the true peak consumption by the mines.

Mr Muyembe said this meant that ZESCO was losing revenue on unaccounted for power ranging from 50 to 100MW monthly, which is equivalent to approximately 67.2 million dollars annually.

He further said ZESCO was at the same time importing power at a higher rate from other utilities in the region and selling the same to CEC at a lower rate resulting to a loss of about 120 million dollars annually.

Mr Muyembe said BSA was, therefore, unsustainable and impacted negatively on retail consumers and on the future of ZESCO as power producer.

14 COMMENTS

  1. What we don’t agree with is the manner in which it’s done because it will eventually cost us money. Some of us opposed the BSA wat back including the appointment of Mr Rodney Sisala as Zesco MD. KCM, ERB and Zesco are being represented by the same party, which is GRZ. So don’t speak in tongues. Why is GRZ not talking about the KCM debt? Now KCM wants free electricity from Zesco?

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    • What we don’t agree with is that there is no information about the way forward. This is a democracy. you cant hide information from
      taxpayers about their own companies and moneys. How d oes this confusion help anyone except corrupt officials How come workers don’t know who is their new employer? And Power Dynamos Club doesn’t know if it will continue?

  2. “…….He further said ZESCO was at the same time importing power at a higher rate from other utilities in the region and selling the same to CEC at a lower rate resulting to a loss of about 120 million dollars annually….”

    Break ZESCO up, no wounder they are a loss making entity just making bill very high for Zambian consumers…..what kind of a company imports power then sells at a loss to a competitor ???

    This ZESCO is nothing but a PF cash cow and cader dumping ground. They can’t make any right commercial decisions.

    Here we have a dinasoor that has had power producing, distributing and selling for generations , yet Zambians suffer diabolic blackouts despite a 200% price hike …..

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  3. Spaka you complain about everything. I bet you even complain when your wife breathes. You are the type of men who end up growing breasts because you exhibit very feminine behaviour and I don’t mean this in a sexist way. In other words stop being b.i.t.c.hy. grow up ba diaspora.

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  4. I wonder who was reading whose statement? Did we not read exactly the same off tune statement from mr Patrick Mwila of Zesco, word for word I mean?

    I thought it was just Habanzoka the PAf cadre, so it’s the whole Economics Association of Zambia?

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  5. Too many children on Lusaka times. CEC was born out of the privatization of ZCCM – Power Division. Cinergy Global Power of the USA and National Grid of the UK acquired the controlling stake in the Company in 1997. The two major shareholders left after the then MMD govt then could not give them rights to develop Kabompo hydropower station. Zambian politicians wanted bribes but LISTED companies DONT ENGAGE IN BRIBERY unless they are rogue! The CEC major shareholders found wheeling of electricity as insignificant & inimical for their growth strategy & they left. Today, even chiefs at Kabompo & kalungwshi in luapula have learnt from politicians and are demanding bribes to have hydropower stations to be built in their chiefdoms. Some Zambians through Greek businessmen have made Kalungwishi…

  6. I earlier understood that CEC and ZESCO contract to supply bulk supply of electricity had come to an end. Why is EAZ defends ZESCO’s move on CEC deal? ZESCO has not terminated the contract with CEC but the term period of the contract has ended. ZESCO has a right either to renew the contract or not. ZESCO was aware of the contract it signed don’t blame CEC. Does EAZ understands contract? Does EAZ understand that the agreement of the Southern Africa Power Pool is just average, is not the best. Now, it is up to ZESCO to solve this problem in its own interest of the country. If ZESCO is just terminating the contract, then it will bear all the costs related to that.

  7. ZESCO Exports power to some neighbouring countries and thats a fact. My questions are do we also charge them like when import. Also does it mean that people in Box 1 Kanele (lundazi)are heavely subsidised by ZESCO since the power they use is imported?

  8. KZ

    Who can complain and be suspect about anything PF touches ?

    A ruling party that gassed its own citizens to try to list opposition as terrorist , resulting in the mass murder of 50 inocents ?

    By the way , KZ , tell lungu we will hold him accountable for those deaths when time comes …..

  9. The contract period came to an end. It was NOT terminated. The only change is that the CEC pylons are common power carriers so even Zesco can transmit through.

  10. @Sridhi Patel . ZESCO has been made to supply free electrity to KCM using CEC infrastructure. You call ZESCO supplying free electricity to KCM as business being run as a business? You must be lunatic!

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