Energy Expert Johnston Chikwanda says it is very unfortunate that the Copperbelt Energy Corporation and Zesco have failed to reach a mutually acceptable power supply deal.

Mr Chikwanda says it was expected that it was not going to be a smooth separation between these two companies although it was and it still remains possible to resolve their issues.

He said the reported time frame in which the negotiations started was not enough.

Mr Chikwanda said given the intricacies around this two decade old relationship, seven weeks of negotiations were not enough.

He said with Zesco stopping to sell electricity to CEC, CEC’s main income would be from charging Zesco for using CEC’s infrastructure (transmission charges) on the Copperbelt in order to remain viable.

Mr Chikwanda said although there is a thought that CEC could import electricity from the region to supply its many customers, this is not guaranteed due to the lack of adequate electricity in the region and the high cost of importing electricity which is likely to me more than the price at which CEC is currently selling to its long term customers.

“Hence, the most realistic vector which CEC will appear to depend on for survival is to charge transmission charges (transmission tariff/wheeling charges).
Gaining full insight in this transmission charge which is also known as wheeling charge or transmission charge and assessing whether it is realistic or not is a matter for the Energy Regulation Board (ERB) which was not part of the engagements unfortunately”, he said.

Mr Chikwanda chikwanda the ERB still remains the best vehicle to adjudicate over tariffs between its licensees in order to maintain stakeholder harmony among players and ensure a fair return on investment for various licensees adding that both Zesco and CEC are ERB’s licensees.

He said in this case, Zesco is only willing to pay a certain amount of transmission charge so that it is able to sell electricity at a profit to the Copperbelt.

Mr Chikwanda chikwanda the amount Zesco is willing to pay may not be the amount CEC wants to charge in order for it to meet its operational requirements, capital expenditure and a fair return on investment hence the challenge.

He said to make matters even more intricate, CEC will also be charged by Zesco for use of Zesco’s transmission infrastructure should CEC resort to importing electricity from the region in order to service its Copperbelt based customers.

Mr Chikwanda said without an independent body to adjudicate and oversee this kind of state of affairs, this matter will go very far and lead to unnecessary challenges. Because of the way both parties have handled each other, there is no trust between them which makes above board negotiations very difficult.

“This is why ERB must be proposed to examine to what each party wants to charge each other for use of its transmission lines. However, ERB is incapacitated due to inadequacies in the current Energy Regulation Board Act”, he said.

“This is the reason I have maintained that the new Energy Regulation Bill of 2019 and the Electricity Bill of 2019 should have now been enacted in to law by now. These Bills when passed into law will solve a lot vexatious challenges and gaps in the electricity sub sector. As of now, ERB is not legally mandated to intervene and set tariffs with regard to Bulk Supply Agreements between Zesco and its big customers which include CEC”, Mr Chikwanda added.

He has however commended government for showing strong praxis of leadership to ensure continued of electricity supply although it is at terms and conditions which CEC appear to be uncomfortable with.

Mr Chikwanda said for the sake of country and given what we currently going through, CEC shoukd allow the electricity to reach the customers while they ignite alternative measures to resolve the impasse.

He said this is a pure case for an independent body to resolve and the sooner it is resolved, the better.

Mahogany Air has announced it has suspended all flights from 30th March to 30th April 2020 in response to the Coronavirus control measures and to join the rest of the country in less contact and observance of staying home.

Company Chief Executive Officer Dr Jim Belemu has noted that since the announcement of the pandemic, the major control measures have been travel restrictions across the globe which put Mahogany like any other airline in the frontline of being negatively affected.

Dr Belemu said Mahogany is open to support flights for any emergency supply that the Ministry of Health may require to move around the country.

In a statement, Dr Belemu said Mahogany flight crew will be on standby to undertake flights as it is everyone’s concern and contribution to prevent and control this disease in Zambia.

Standard Chartered has announced it will commit US$1 billion of financing for companies that provide goods and services to help the fight against Covid-19, and those planning the switch into making products that are in high demand to fight the global pandemic.

Companies in scope include all those associated with helping to tackle Covid-19, including manufacturers and distributors in the pharmaceutical industry and healthcare providers, as well as non-medical companies that have volunteered to add this capability to their manufacturing output – goods in scope include ventilators, face masks, protective equipment, sanitizers, and other consumables.

Simon Cooper, Chief Executive Officer of Corporate, Commercial and Institutional Banking at Standard Chartered, said clearly there’s a cost for companies to switch into these hugely in-demand items, so it’s an area where the Bank can help them get up and running more quickly.

He said at the same time, the Bank wants to make sure that existing manufacturers and service providers get the support they need.

Mr Cooper said the bank intends to provide, at preferential rates, at least US$1 billion of financing to those companies in the form of loans, import/export finance or the working capital facilities that they use for day-to-day business operations to help them tool up, and help existing manufacturers get their products to market.

He said Standard Chartered is also trying to identify companies that may wish to switch into or add anti-virus products to their output but haven’t indicated that they will do so at this stage.

“Our industry teams are looking across our client base and, given our understanding of clients’ current manufacturing processes, we’re assessing which companies might want to consider adding these items to their production line,” he added.

He said All financing will be subject to companies having received regulatory approvals to manufacture the goods.

Mr Cooper said the bank will continue to serve all of its clients during what is a challenging period for all companies, from small businesses to large multinationals.

This is according to a statement issued to the media by Standard Chartered Bank Zambia Head of Corporate Affairs, Branding and Marketing Christine Matambo.

The Victoria Falls (Mosi oa- Tunya) shared between Zambia and Zimbabwe has been closed to the public on the Zambian side as countries struggles to cope with the Covid-19 outbreak.

Zambia’s National Heritage Conservation Commission confirmed in a statement on Tuesday.

In a letter addressed to Livingstone Tourism Association, Commission Regional Director, Oliver Kandyata, explained that the falls has been closed until further notice.