The Directors of Copperbelt Energy Corporation PLC (“CEC”) presents the annual earnings presentation for the year ended 31 December 2015. Below is an extract from the presentation.
- Drought imposed generation constraints nationwide compounded by commodity price falls (copper). CEC accessed a proportion of its power from SAPP for its mining clients during the year when ZESCO could not meet power requirements as a result of drought induced generation challenges.
- YOY energy sales were down 3%. Domestic wheeling for ZESCO down 4% on account of load shedding and commodity prices. Mines are cost cutting and restructuring to promote long term sustainability.
- Solid performance from CEC Plc particularly in power trading which is one of the key focus areas going forward (20% of revenues). Increased off-take by DRC mines recorded.
- Tariff increment +29% passed by Energy Regulation Board in April 2014 remained unresolved however fresh tariff adjustment process commenced end 2015 and uniform tariff of USc10.35 kWh to all mines driven.
- Realtime now 100% subsidiary of CEC Liquid Telecom and renamed to Hai Telecoms – broadens CEC internet offering to the retail market. CEC Liquid Telecom turned profitable.
- CEC Liquid Telecom grew its fibre footprint from 2,494 km to 2,730 km in 2015 and continued its FTTH roll out (covering most parts of Lusaka) and this will be continued in other parts of Zambia.