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Alba Iulia
Wednesday, January 26, 2022

ZESCO CEC settle dispute

Economy ZESCO CEC settle dispute

Copperbelt Energy Corporation (CEC) that supplies electricity to mines has paid ZESCO 16 million United States dollars following an arbitration.

ZESCO from which CEC buys power for redistribution had claimed that CEC had not fully paid money due to it for electricity supplied under the Bulk Supply Agreement -BSA-.

This was in the sum of over 51.6 million dollars plus interest of 2.6 million dollars.

Following the arbitration which started in 2019, the sole arbitrator issued a Second Partial Award by Consent on November 2, 2021 ordering CEC to pay the principal sum of 4.2 million dollars plus interest of 12.2 million dollars.

A statement issued by CEC further says if a court of competent jurisdiction finds that the Energy Regulation Board’s decision to increase tariffs is valid and lawful, an additional amount of 227 million dollars will be paid to ZESCO for power supplied by ZESCO under the bulk supply agreement.

The company says in a cautionary announcement that Shareholders should exercise caution in dealing in the Company’s securities until further notice and seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.

CEC is listed on the Lusaka Stock Exchange.

9 COMMENTS

  1. This article does not make sense at all CEC and ZESCO had an agreement which expired some two years ago …where has this $16 million come from and how can interest be 5 times higher than the original figure? Media houses need to employ financial educated journalists to avoid all this gibberish.
    Remember also that ZESCO took over all CEC power lines …what happened there?

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  2. Zesco remains the most Rotten of Zambian Parastatal Organisations and was the number one facilitator of misappropriated funds to Edgar Chagwa Lungu and his PF Corrupt Criminal Enterprise of a Government .
    What we the people are still waiting for is a Branch and Root shake up of that Organisation.
    Why is Victor Mundede still running the company????
    GRZ Government please go and drain that Swamp Now

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  3. @FakeKaizerZulu, you and your PF lost. You irrelevant wanker…lol. Zambia purged you PF children of unknown fathers and community mothers. Back to the komboqi from where yo came.

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