BUUMBA CHIMBULU writes
THE Copperbelt Energy Corporation Plc (CEC) remains open to continuing to work with Konkola Copper Mines (KCM) and other parties that may be involved to negotiate and enter into the required transmission and connection agreements should the need arise.
CEC will continue to meet its core mandate of providing all such transmission and connection services at the best quality possible, says the company in its corporate news release to investors.
The company indicated that KCM remained an important customer given that it was directly connected to and fed from the CEC power network at multiple points.
“This means that even if KCM signs a Power Supply Agreement (PSA) with another provider, KCM will still require transmission and connection services from CEC.
“Like any other customer, KCM cannot exist on the CEC network without a form of connection services agreement with the Company,” CEC said.
CEC also informed its investors that it would, effective June 1, 2020, discontinue the supply of power to KCM as PSA between the two companies came to an end on March 31, 2020 but was extended through mutual agreement of the parties, up to May 31, 2020.
It said negotiations for its further extension have broken down, despite CEC’s best efforts in good faith towards securing a new contract and engaging in comprehensive and cooperative negotiations.
“In trying to agree the new contract with KCM, CEC sought to resolve KCM’s outstanding debt of US$132 million as well as obtain a firm commitment from KCM regarding the timely payment of electricity charges going forward.
“These costs continue to increase – it is CEC’s expectation that KCM’s debt to CEC will grow to at least US$144 million as at 31 May 2020,” CEC said.
CEC said without a renewed contract in place, it could not continue supplying power to KCM as doing so would jeopardise the company’s financial position and endanger its efforts to provide essential power supply to its other customers.
