The electricity contract between the CEC and KCM also ended on March 31 and was only extended by mutual agreement until May 31, the CEC said in a statement on Sunday. KCM owes the energy company $132 million, the CEC said. Last Friday, the CEC informed its shareholders that Energy Minister Mathew Nkhuwa had informed management that the agreement would not be renewed after the end of March. What`s wrong with having a new agreement with completely different terms? Remember, imwe ba CEC, in the past you have benefited from free money. The government says the status quo cannot continue. So be prepared for new terms. If you used to pay 50 ngwee per share as a dividend, be prepared to pay 6 ngwee per share. You don`t have a product to sell. “In the CEC`s view, the conclusion of a mutually acceptable electricity supply agreement between the parties remains of strategic importance for the electricity sector and the country. Therefore, the CEC remains confident that the parties will use the coming weeks to close the negotiating gap in order to reach the much-needed new electricity agreement. A statement from KCM said the company entered into another agreement with Zesco after its contract with CEC expired with effect from June 1. Chama Nsabika, Cec`s head of corporate communications, said in a statement that while the initial agreement was that while both parties involved are working to establish an interim agreement, it became clear during the negotiations that the intention was to agree on an entirely new agreement with completely different terms. However, it states that the CEC will continue to provide continuous electricity services to all mining and non-mining consumers of the Copperbelt during the negotiation phase of a new electricity contract, just 24 hours after Energy Minister Mathew Nkhuwa ordered that there be no power cut for the Copperbelt, the power supply continuing under Zesco conditions.
EASI President Chisakula Kaputu said the motive behind the government`s refusal to renew the agreement with the CEC was highly questionable. Copperbelt Energy Corporation says negotiations on a new mass supply agreement with ZESCO have failed due to new terms proposed by the government that, if accepted, would hurt its operations. CEC announced the end of its long-term power purchase agreement with ZESCO with effect from 31 September. March 2020, terminating a 23-year contract. On 21 November 1997, Zesco Limited and CEC entered into an agreement under which the former abolished the supply of electricity to the latter wholesale, which expires on 31 March this year. Nkhuwa said the power supply contract between Zesco and CEC, which expired on March 31, will not be renewed. This came into effect at midnight on May 31. The company said this was due to the failure of negotiations to renew a mass supply contract (BSA) with state-owned energy company Zesco. A 20-year contract between CEC and KCM, which operates Zambia`s largest copper smelter, Nchanga, as well as the Konkola and Nchanga mines, expired on March 31. .