Energy Minister Matthew Nkuwa has stated that the Copperbelt Energy Corporation – CEC remains a Zambian private company listed on the Lusaka stock exchange and has not been nationalized or expropriated by government following its recent developments with Konkola Copper Mine – KCM.
Nkuwa says government is aware of the over 400 Zambians who have invested in CEC and is proud of its achievements in the recent past and it continues to play a critical role in the Zambian electricity market therefore sentiments indicating that the Zambian government is about to take over CEC should be ignored.
Speaking at a joint media briefing in Lusaka on June 17, 2020, attended by the Zambian Business Times – ZBT, the minister said prior to the expiration of the Power Supply Agreement – PSA between KCM and CEC, KCM formally engaged ZESCO to enter successor agreement that would ensure continuation flow of power following its outstanding debt of about $144 million owned to CEC.
He said it was from this stance that ZESCO was free to enter into a PSA as on June 1st 2020 and that it was in accordance with clause 18 of the electricity Act of 2019.
He further said that in the interim, ERB has determined that CEC shall charge a wheeling tariff of US$5.84/KW/Month effective June 1st 2020 pending determination of a final tariff governing the relationship in consultation with the parties.
“I would also like to indicate that the infrastructure remains that of CEC while the same shall be used as a common carrier of power in line with the provisions of the electricity Act 11 of 2019. However, we are still in consultation to come up with our own charges, terms and conditions but be rest assured that our charges will not go beyond what has already been set by CEC,” He added.
Meanwhile, the minister has also confirmed that during the period 1st May to 15th June 2020, the average generation of electricity in the country was 1,780MW which comprised 1,379MW from ZESCO and 401MW from independent Power Producers – IPPs.
He said the reduction in the IPPs contribution was due to non-availability of Heavy Fuel Oil from Ndola Energy Limited and non – availability power from Lusemfwa Hydro Power Plant. The power deficit in the country still stands at 810MW and that Load shedding for up to 10 hours is being carried out for different customer’s categories under distribution.
