CEC 2022 AGM Management Presentation

Business Environment Highlights

New Government in Place

• National elections held in August 2021 ushered in a new government.
• New government announced intentions to anchor economy on private sector.
• This will require an enhanced business environment to attract private capital.
• CEC leveraging improving environment by enhancing engagements with key stakeholders and resolving historical issues.

COVID-19 Update

• Work environment was a mix of remote working and office presence.
• CEC continues to observe and enforce all health guidelines which kept COVID-19 cases at a minimum.
• Vaccination rates currently at circa 35%. CEC continues to encourage employee vaccination.
• All staff now working from the office following further guidelines from the authorities.

Power Situation

Good balance between supply and demand in 2021 due to:

• Improved water levels at country’s main hydro plants.
• Commissioning of about 300MW (2 x 150MW) at Kafue Gorge lower by ZESCO.
• Load curtailment for non-mining customers was almost non-existent.
• Situation continued to improve; country now becoming net exporter of power.

Financial Performance

• Key agreements: Negotiations underway.
• Financial profitability: Improved financial performance.
• Litigation – value protection: Higher costs arising from the value protection initiative.
• KCM payment default: Payment default continuing.
• Cash conversion: Improved cash generation.

Priorities and Outlook

Optimize performance

• Take advantage of improving business environment to resolve contractual and other key commercial matters aim is to achieve stable operations and focus on strategy implementation.
• Focus on successful delivery of the capital program to support asset modernisation & digitalisation, efficiency improvements and quality growth.

Strengthen Supply Portfolio

• Integrate renewable sources in operations.
• Continue to explore opportunities to offtake fairly priced power from IPPs.
• Actively support and participate in shaping the country’s future electricity market based on open access and economic pricing of services.

Enhanced Relationships / Communication

• Work to enhance relationships with all stakeholders: government, customers, regulators, suppliers, employees, investors and local community, etc.
• Enhance public and investor communication.

 

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