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Government Declares CEC Transmission Lines Common Carriers

Lusaka – 31st May, 2020.

Government has declared Copperbelt Energy Corporation transmission and distribution lines as common carrier of electricity.

To this effect, Minister of Energy, Mathew Nkhuwa has signed a Statutory Instrument No. 57 of 2020 under the Electricity Act No.11 of 2019.

“The Transmission and distribution lines are declared as common carrier for the purposes of the Act and shall be used on the terms and conditions determined by the Energy Regulation Board (ERB)” Read the Statutory Instrument.

There has been a two-year impasse over the renewal of Bulk Supplier Agreement (BSA) between the CEC and ZESCO. ZESCO and its biggest electricity off-taker, Copperbelt Energy Corporation PLC (CEC), have failed to reach an agreement on the renewal of the Bulk Supply Agreement.

Government directed ZESCO to apply Cost Reflective Tariffs to all customers.

The BSA commenced on 21 November 1997, between the Government of Zambia, the CEC, and ZESCO Limited to facilitate electricity supply to the mines on the Copperbelt as well as the domestic customers in the mining townships and surrounding areas.

It was initially scheduled to expire after fifteen years in November 2012 but was however further extended to give it an effective twenty-three (23) year life span, ending on the 31st of March, 2020.

On Wednesday 11th October 2017, the then Minister of Energy David Mabumba, announced in Parliament policy measures that were being taken to migrate electricity tariffs to cost-reflectivity for all customer categories including CEC.

The Copperbelt  Energy Corporation Plc (CEC), is a member of the Southern Southern African Power Pool (SAPP) and is listed on the  Lusaka Securities Exchange.

It is an incorporated power transmission, generation, distribution and supply company and began to develope its own energy infrastructure.

ZESCO has been supplying electricity to CEC at highly subsidized rates for the company’s onward power supply to the mines but at huge profits.

This in turn has had an adverse effect on ZESCO customers who have to pay high electricity tariffs to keep Zesco afloat as its services to CEC are almost at a loss.

Copyright © 2020 ZR.

You can get in touch with our news team by emailing us at: editor@zambiareports.com

5 Comments

  1. Tumbuka

    Twalalingana ba CEC. Naimwe mwalatampa ukunya amenshi kikikiki!!!!

  2. SOS

    Everything nipamaka,closing of media houses,blocking other political parties from being active,blocking those that refuses to fund pf campaigns,,,,,,the likes of mopani copper mine,churches will be audited for the first time by the pamaka savages who have failed to tell the poor Zambian people who Gassed them and took many innocent lives.Poor Zambians!let’s not live without vision and be so forgetful like kids”utubana utunono” who can be consoled by giving them sweets for beating them.Look where we heading to,,,,,,tafili bwino kuntanshi naba Bantu.

  3. zisc worker

    HH and Milupi are money launderers. Look what they did to Livingstone. HH negotiator for the sale of Music o tunya to Zambezi sun, Miluoi grabbed 5000 hectares of prime land. ZRA shall conduct transfer pricing audit of Sanlam Life Insurance

  4. Chrispin Chansa

    c

  5. Jms

    I agree a reasonable person or Institution can and suppose to reject any offer seeing its route is leading to a ditch, you are right.

Comments are closed.