ZESCO and CEC initial a new Bulk Supply Agreement (BSA) to underpin power supply and service provision between them
ZESCO Limited (ZESCO) and Copperbelt Energy Corporation Plc (CEC) have successfully completed negotiations for a new BSA that will be effective 1st April 2022. The new BSA underpins arrangements for power supply and provision of transmission services between the two companies. The new BSA will replace the old BSA that expired on 31 March 2020 and marks the beginning of a new mutually beneficial relationship of the two largest utilities in the country.
Speaking jointly at the initialling ceremony, the Managing Directors of the two utilities, Engineer Victor Benjamin Mapani and Engineer Owen Silavwe, had similar messages summarised as follows:
“We are glad that the negotiations that our two companies commenced in January 2022 have progressed according to plan and finally borne fruit. As we declared at the very start of the negotiations, the discussions were driven by the desire to find a solution that would be mutually acceptable and beneficial to the two companies. We firmly believe that this new BSA encapsulates this aspiration and will help carry our business relationship to a next level and bring stability to the power sector and effectively support the country in its quest to revive the economy.”
The two companies are confident that the strong interconnection that exists between their power networks, coupled with the need to closely coordinate operationally will continue to be the cornerstone of their ongoing efforts to foster a cordial, transparent and commercially sound business relationship going forward. ZESCO and CEC are committed to working together through the enhanced public private partnership framework to help catapult the country’s energy agenda to the next phase in support of the goal of achieving reliable, sustainable, and affordable electricity for all.
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For further information, contact:
| ZESCO Dr. John E Kunda Senior Manager Corporate Affairs +260 211 361111 +260 979765025 [email protected] |
CEC Chama Nsabika Senior Manager Corporate Communication +260 212 244914 +260 966 792922 [email protected] |
About CEC
The Copperbelt Energy Corporation Plc (CEC) is a licensed 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 the Democratic Republic of Congo (DRC) in conjunction with that country’s state utility, SNEL. CEC wheels power through its network on behalf of ZESCO Ltd in 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, CEC-InnoVent South, InnoVent-CEC North and Power Dynamos Sports Limited (PDSL). CEC-KHPL is the special purpose vehicle through which CEC is developing the 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. CEC-InnoVent and InnoVent-CEC are purposed for the development of solar PV sites. 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.
About ZESCO Limited
ZESCO Limited is a vertically integrated electricity utility, which generates, transmits, distributes, and supplies electricity which was formed in 1970 after the Zambia Electricity Supply Act was passed in Parliament. It is a public utility, with the government of Zambia through IDC as the sole shareholder. The utility is committed to providing safe and reliable electricity to improve the quality of life for all. Its value system is given in the Mission, Vision and Value statement. The Mission: Making it easy for people to live a better life and the vision; To be the hub for electricity trading in the region by 2025.
The total national installed generation capacity currently stands at around 3,644 MW against national average demand of around 2,410 MW. ZESCO’s own generation capacity stands at 2,657 MW (including ZESCO owned IPPs). Hydro power generation accounts for (99.9%) of ZESCO generation capacity and diesel generation stands at 10MW (0.1%). Further, ZESCO owns over 100,000 kms of transmission and distribution lines and has an installed transformer capacity of over 5,000MVA.
