And CEC says government’s demands over the disputed BSA, if accepted, would be injurious to its ability to continue operating as a going concern.
In a media statement, Wednesday, CEC stated that it remained committed to ensure seamless power supply to both its mining and non-mining customers amidst its stalemate with Zesco over the BSA.
The BSA lapsed, Tuesday, after several years of negotiations ended in failure to agree to new terms.
“CEC reiterates its total commitment to continue providing seamless power supply services to all its customers (mining and non-mining consumers) on the Copperbelt, while the parties continue to seek resolution of the outstanding matters and follow through with conclusion of the negotiation for a new power supply agreement. It is our understanding that Zesco similarly remains committed to continue meeting its full obligations to its customers without any interruption to service,” CEC stated.
“The Company will do its best to ensure that any agreement it enters into will be negotiated in good faith and reflect a fair outcome so as to ensure that the business continues to operate sustainably and in the interest of all its stakeholders, who include shareholders, customers, employees and many others.”
And the Kitwe-based power utility revealed that government’s demands over the disputed BSA, if accepted, would be injurious to its ability to continue operating as a going concern.
“While the initial understanding was that the parties would work to put in place an interim agreement, it became clear during the negotiations that the intention was to agree a wholesomely new agreement with totally different terms. CEC believes that throughout the negotiation, it held its end of approaching the negotiations in good faith. At the close of day on 31st March, 2020, the parties had not reached agreement on account of certain terms; seen as key requirements from either side and which, as yet, are not acceptable to the other party. On its part, CEC considers that some terms being demanded by the GRZ team, if accepted, would be injurious to the CEC business and impact its ability to continue operating as a going concern,” stated CEC.
“In CEC’s view, achieving a mutually-acceptable power supply agreement between the parties remains of strategic importance to the electricity sector and the country. Therefore, CEC remains confident that the parties will use the next several weeks to narrow the negotiation gap so as to move to a position culminating into a new power supply agreement between them.”