Further to our statement of 29 May 2020 on the decision to discontinue power supply to Konkola Copper Mines Plc (KCM) due to there being no contractual basis to provide service, Copperbelt Energy Corporation Plc (CEC) wishes to advise that it has today, 1 June 2020, commenced the process of discontinuing power provision to KCM.
The decision by CEC comes on the back of two critical issues:
- CEC currently has no contractual basis to continue providing service to KCM;
- KCM’s outstanding indebtedness to CEC of about USD144 million as at end of May 2020 remains without an agreed solution between the parties.
This decision has been taken to protect and enforce CEC’s commercial rights as a business and ensure that the Company does not engage in reckless trading. As a listed business, CEC has an obligation to all its shareholders to preserve whatever value is left of its business at this stage. Without this important action, the continuing risks may cause irreparable damage to the business.
As a responsible business and corporate citizen, CEC will not interfere with or endanger any national assets or those of its customers. CEC’s interest at all times is to ensure that its business and that of its customers operate optimally and to each party’s best interest, having regard for the mutual obligations that underpin commercial business relationships. Therefore, reduction of power, whenever justifiable, is an action of last resort done in a very responsible, well-considered and planned process with the full involvement of the customer, prioritising the safety of personnel and equipment, and leaving the minimum power required for purposes of safeguarding personnel and the mine’s assets.
For further information, contact:
Chama S. Nsabika
Senior Manager Corporate Communication
+260 212 244914
+260 966 792922
The Copperbelt Energy Corporation Plc (CEC) is a licensed independent power generation, transmission, distribution and supply company whose core business is the supply of power to the copper mines based in the Copperbelt Province of Zambia and some mining companies in the DRC in conjunction with that country’s state utility, SNEL. CEC wheels power through its network on behalf of ZESCO Ltd on the Copperbelt, owns and operates a transmission interconnection with the DRC, over 1,000 kilometres of high voltage transmission lines and 43 substations across the Copperbelt.
CEC has five incorporated subsidiaries – CEC-Kabompo Hydro Power Limited (CEC-KHPL), CEC DRC Sarl, CECInnoVent South, InnoVent-CEC North and Power Dynamos Sports Limited (PDSL). CEC-KHPL is the special purpose vehicle through which CEC is developing the 40MW Kabompo Gorge hydroelectric power project in Mwinilunga District of the North-Western Province of Zambia, while CEC DRC Sarl is a special purpose vehicle incorporated to secure the power trading segment and grow the Company’s interest in the DRC market. PDSL is a special purpose vehicle which runs Power Dynamos Football Club.
CEC is listed on the Lusaka Securities Exchange and is a member of the Southern African Power Pool.