Zambia intends to seize CEC infrastructure an act of arrogance – Haimbe
Energy minister Matthew Nkhuwa on May 29, 2020 issued Statutory Instrument No.57 of 2020, the electricity (common carrier) (declaration) regulations, 2020 just before CEC was about to cut power supply to Konkola Copper Mines.
“The transmission and distribution lines set out in this schedule are declared as a common carrier for the purposes of the Act and shall be used on the terms and conditions determined by the Energy Regulation Board,” reads the SI. “Schedule: 1. Transmission lines. All transmission lines operated by the Copperbelt Energy Corporation. 2. Distribution lines. All distribution lines operated by the Copperbelt Energy Corporation.”
Reacting to the SI, Haimbe a lawyer said, it was utter arrogance and failure to think in a logical business-like manner to forcibly wheel power in such a manner.
Following the issuance of the SI, KCM issued a statement stating that the mine expected a seamless transition in the supply of power from CEC to Zesco.
KCM general manager corporate affairs Shapi Shachinda said any interference or restriction would be an act of sabotage.
But Haimbe questioned the KCM position.
KCM’s owes CEC about US $144 million.
“KCM even has the audacity to say CECs failure to do so will be considered an act of sabotage. How about the cost of doing so since this power supply will have to be controlled, monitored and ultimately there will have to be input through CECs control centre? What if conditions arise which result in poor quality of power supplied while going through the CEC system – who will be responsible for that? Utter arrogance and failure to think in a logical business-like manner. If CEC engineers make a decision to tap down their transformers for example in order to protect the CEC system relating to this power that is being forcibly wheeled, what happens?” Haimbe asked. “Mind you if KCM stays without power for 30 minutes, some of the watertight doors in the mine shaft have to be shut and the affected parts of the mines may be lost permanently.”
He wondered how technocrats on KCM/GRZ/Zesco want to be emotional and arrogant about this issue.
On Monday evening, CEC said it would not interfere with or endanger any national assets or those of its customers. Senior manager corporate communication Chama Nsabika said the decision by CEC comes on the back of two critical issues: CEC currently has no contractual basis to continue providing service to KCM and KCM’s outstanding indebtedness to CEC of about US $144 million as at end of May 2020 remains without an agreed solution between the parties.
“Further to our statement of May 29, 2020 on the decision to discontinue power supply to Konkola Copper Mines Plc (KCM) due to there being no contractual basis to provide service, Copperbelt Energy Corporation Plc (CEC) wishes to advise that it has today, 1 June 2020, commenced the process of discontinuing power provision to KCM,” she said in a statement. Nsabika said the decision had been taken to protect and enforce CEC’s commercial rights as a business and ensure that the company does not engage in reckless trading.
“As a listed business, CEC has an obligation to all its shareholders to preserve whatever value is left of its business at this stage. Without this important action, the continuing risks may cause irreparable damage to the business,” she stated. “As a responsible business and corporate citizen, CEC will not interfere with or endanger any national assets or those of its customers. CEC’s interest at all times is to ensure that its business and that of its customers operate optimally and to each party’s best interest, having regard for the mutual obligations that underpin commercial business relationships.”
Nsabika said reduction of power, whenever justifiable, was “an action of last resort done in a very responsible, well-considered and planned process with the full involvement of the customer, prioritising the safety of personnel and equipment, and leaving the minimum power required for purposes of safeguarding personnel and the mine’s assets”.
Source: The mast
