Restrictions on electricity supply

COPPERBELT Energy Corporation (CEC), Zambia’s main supplier of power for its mines, confirmed yesterday that it has restricted the amount of electricity it supplies to Glencore unit Mopani Copper Mines (MCM) because of a dispute over tariffs. Mopani said on Saturday that it has suspended operations in certain areas after CEC restricted power supply to its mines in both Kitwe and Mufulira. The government in April proposed introducing a flat tariff of US9.3 cents per kW/h, backdated to January, for mining companies, instead of individually negotiated rates that have averaged 6c kW/h, but mining companies opposed the plan. “To date, MCM has rejected the industry-wide tariff increment and sought to continue to pay for the electricity they consume at the old tariff,” CEC spokesperson Chama NsabikaKalima said. – Reuters