The CEC is confident that, in the meantime, both ceC and ZESCO remain committed to continuing to fulfill all of their obligations to their customers, without any affected service in any way. For its part, the CEC reaffirms its unqualified commitment to continue to provide seamless electricity services to all its customers (mining and non-mining consumers) on the copper belt, as the parties continue their efforts to resolve outstanding issues and have concluded negotiations for a new power agreement. The CEC feels it is assured its shareholders and all stakeholders that it will do its best to ensure that any agreement it enters into is negotiated in good faith and reflects a fair outcome to ensure that the transaction continues as a current entity. “We expect a smooth transition in the power supply from CEC to Zesco and any interference or restriction will be an act of sabotage,” KCM said. Since then, the CEC has been providing electricity to copper belt mining companies as well as to most mining areas. In a statement, KCM stated that when its contract with the CEC expired, the company had entered into another agreement with Zesco, effective June 1. KEK believes that securing a mutually acceptable electricity supply agreement remains of strategic importance to the electricity sector and to the country. Therefore, KEK remains confident that the parties will take advantage of the coming weeks to reduce the negotiating deficit in order to reach the new electricity supply agreement that is urgently needed between them. “In accordance with Section 81 (1) of The Securities Act No. 41 of 2016, Copperbelt Energy Corporation Plc`s Board of Directors (“CEC” or “the company”) draws attention to the company`s shareholders and the market, which is expected to expire on March 31, 2020, the electricity supply contract (“CEC”) between ceC and ZESCO Limited (“ZESCO”). said Julia Chaila, business secretary. “The Government of the Republic of Zambia (“GRZ”) has informed KEK, through the Minister of Energy and Zesco, that the BSA expires on the aforementioned date and is not being renewed. GRZ and Zesco expressed their determination to KEK to continue to provide electricity to copper belt consumers, both during their validity and after the BSA. The CEC would like to underline its unwavering commitment to using its infrastructure and capabilities to ensure a continuous and fluid supply to all copper belt consumers, now and after the BSA.
A 20-year contract between CEC and KCM, which operates Zambia`s largest copper plant, Nchanga, as well as the Konkola and Nchanga mines, expired on 31 March. It was extended by mutual agreement until 31 May, after… The electricity supply agreement between the CEC and KCM was also withdrawn on 31 March and was extended by mutual agreement until 31 May, KEK said in a statement on Sunday. KCM owes US$132 million to the energy company, the CEC said. EASI President Chisakula Kaputu said the reason for the government`s refusal to extend the agreement with KEK was highly questionable. On November 21, 1997, Zesco Limited and the CEC entered into an agreement in which the former supplied the latter with electricity in the wholesale trade, an agreement that expires on March 31 of this year. Zambian Energy Minister Mathew Nhkuwa told Reuters that KCM would now source directly from state-run energy supplier Zesco, which previously sold electricity to CEC and delivered it to KCM.