In accordance with Section 3.4(b) of the Lusaka Securities Exchange Listings Requirements (“LuSE Listings Requirements”), the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company”) wishes to inform shareholders and the market that the Company has become aware that the then Minister of Energy, Honourable Mathew Nkhuwa on 1 April 2021, issued a new statutory instrument referred to as Statutory Instrument No. 24 of 2021 (SI 24), the Electricity (Common Carrier) (Declaration) Regulations, by which he declared CEC’s transmission and distribution lines as common carrier.
Shareholders will note from the relevant cautionary and market announcements issued by the Company that SI 57 of 2020 dated 29 May 2020, now replaced by SI 24, was successfully challenged by CEC in a Judicial Review application resulting in a judgement of the High Court which quashed the Minister’s decision to declare CEC’s transmission and distribution lines as common carrier. From the Company’s perspective, SI 24 has the same unfavourable effect of reinstating the objectives and intentions of SI 57 of 2020 which were raised in the action before the High Court. Like the one before it, the new SI effectively compromises the Company’s commercial and property rights, thereby threatening the viability of the CEC business and potentially jeopardising the vast investments made by both local and international investors in the Company.
The Company wishes to assure its shareholders and all stakeholders that it will continue to use its best endeavours to seek the most favourable outcome for the business, whenever possible, and remains resolute and committed to ensuring the integrity of the business is protected. CEC will, therefore, continue to take all the necessary steps to find solutions, including dialogue.
By Order of the Board
Julia C Z Chaila
Issued in Lusaka, Zambia on 21 May 2021