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.

 


 

PDF DOWNLOAD: CEC 2022 AGM Management Presentation.pdf