ZESCO, KCM discontinue case against CEC
ZESCO and KCM have filed an application to discontinue the matter where the two companies are seeking a declaration that Copperbelt Energy Corporation (CEC)'s decision to restrict power supply to the Mine breaches the law.
"Take notice that the first plaintiff in the original action and second defendant in the counter claim has wholly discontinued its action against the defendant in the original action on grounds that the same has been overtaken by operation of the law," read the notice of discontinuance filed in the Lusaka High Court.
In this matter, Zesco and the Konkola Copper Mine (KCM) sued CEC in the
Lusaka High Court last year, seeking an order of injunction barring CEC by itself or agents from interfering in the Time Sheet Agreement between the plaintiffs through restricting KCM from receiving supply from Zesco, pending determination of the matter.
The two companies also wanted another order restraining CEC from effecting any supply units, lines or delivery points to KCM as then they were Common Carriers as declared under Statutory Instrument (SI) No. 57 of 2020.
CEC however counter sued ZESCO and KCM seeking an order that Zesco pays it US$144 million as compensation for the power supplied to KCM which it could not recover due to the alleged conspiracy between the two companies and the Government.
CEC was also demanding compensation for loss of its income as a result of an abrupt end to negotiations between it and KCM for renewal of the Power Supply Agreement, and an order that Zesco pays it by way of compensation, the value of the power supplied to KCM from June 1, 2020 until date of judgement.
CEC also wanted the Court to declare KCM Provisional Liquidator Milingo Lungu’s refusal or failure to settle the sum of US$144 million owed to CEC a breach of his statutory duty to the Copperbelt-based power utility.
The declaration of CEC power lines as common carriers by then Minister of Energy Mathew Nkhuwa was quashed by the Lusaka High court.