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April 19, 2024
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CEC | Invitation to Tender in the CEC cost of service study project

The Copperbelt Energy Corporation PLC (CEC) is an independent power transmission and distribution company with interests in closely linked businesses in Zambia and the African region. CEC intends to undertake a Cost of Service Study (CoSS) of its services. CEC owns, maintains and operates transmission and distribution infrastructure in the Copperbelt Province of Zambia. CEC core operations involve supply of electricity to most mining companies in the Province. The CEC network is spread over all towns in the province and comprises over 1,000 km of transmission lines (mainly 220kV and 66kV), 41 high voltage substations and a total of 80MW of Gas Turbine Alternators (GTA) which are strategically located at four different sites within the province to provide emergency supplies to the Mines in the event of grid failure. CEC has a long term power supply agreement (Bulk Supply Agreement, BSA) with the national utility, ZESCO, to supply its electricity requirements. CEC also undertakes domestic wheeling on behalf of ZESCO for onward supply to its customers on the Copperbelt. Further, as part of the interconnected regional network and member of the Southern African Power Pool (SAPP), CEC also undertakes international wheeling services to and from Societe Nationale D’electricite (SNEL), the national utility in the Democratic Republic of Congo (DRC), and participates in the regional power trade.

CEC is seeking the services of a competent and experienced consultant to undertake the CoSS for its services. The CoSS should provide CEC with a better understanding of its cost structure.

As part of this assignment the Consultant is expected to:

1.1. Determine CEC’s current cost of service (using 2014 as base year) and develop an estimate of its cost of service for each customer between the base year and 2019 and carry out sensitivity analyses based on the estimate assumptions;

1.2. Develop a dynamic cost of service model that can be used by CEC to forecast revenue requirements and tariffs, and to test the effect of a scalable number of assumptions and operational variables on the outcomes;

1.3. Provide appropriate reports and develop user manuals for the dynamic model to be used in determining future revenue requirements;

1.4. Provide training and capacity building for the relevant CEC employees in the use of the above model.

A detailed scope of the study is available in the Request for Proposals (RFP) and Terms of Reference (ToR) which are obtainable from the address indicated below after payment of a non-refundable fee of K 1,000 at the CEC Cashier’s Office at the address indicated below from 8:00 to 12:00 hours and from 14:00 to 16:00 hours from Monday 2 February, 2015 to Friday 13th February, 2015 both days inclusive but excluding weekends. Electronic payment is also acceptable and available on request. Participation in this tender will only be valid after payment of the non-refundable fee as indicated above.

The Secretary – Business Development (Room 62), Copperbelt Energy Corporation Plc, 23rd Avenue, Nkana East, P.O. Box 20819, Kitwe, Zambia.

This advertisement will also be available on the CEC website, www.cecinvestor.com, starting Monday 2 February, 2015. Closing date for receipt of proposals shall be 27th March, 2015. For further details or enquiry, you may call +260 212 244 246 or +260 212 244 017 or email [email protected] or [email protected]

about CEC

Copperbelt Energy Corporation is a Zambian-based power infrastructure solutions provider. It supplies reliable, cost-effective power to industrial, commercial, and residential customers across sub-Saharan Africa.

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