Zesco takes over CEC power supply as negotiations stall noticed
ZESCO and Copperbelt Energy Cooperation (CEC) have failed to agree on terms to sign the 20 year Power Bulk Agreement which ended at midnight yesterday.
However, Minister of Energy Mathew Nkhuwa assured the mines that Zesco would commence at 01:00 hours today Wednesday April 1, 2020 to provide continuous and uninterrupted power supply to CEC under conditions as provided by Zesco on an interim basis until further notice.
Mr Nkhuwa said that the power utility company during negotiations proposed to sign a 12 months tenure which had been objected to by CEC.
He said at a media briefing yesterday, instead CEC proposed a 16 year tenure with commercial terms which had been seen not to be favourable to Zesco, Government or the public in the long run.
The minister observed that in the last few days during negotiations, Government
that CEC was in fact not willing to sign the agreement of 12 months tenure which had been a basis of all negotiations conducted by the two parties over the last seven weeks.
“This is a most unfortunate situation as Government would have hoped that all parties see the need to arrive at a workable short term solution as the parties endeavour to work out a long term sustainable relationship,” Mr Nkhuwa said.
He said Government would not allow any threats to continuity of reliable power supply to customers on Copperbelt as negotiations were going on to reach an agreement.
An interruption of power by CEC during the continued negotiations, Mr Nkhuwa said, was tantamount to sabotage and Government would not take it lightly.
He said that interruption of power would negatively affect the mines which would be difficult to recover and such can not be allowed.
And Mr Nkhuwa said it was obvious that the two parties would come to agreement on the Power Bulk Agreement as they would sit to negotiate further.
He said it was prudent that the two parties come up with terms which would be a win-win situation which would be beneficial to the general public.