The end of the bitter war over the future of the Bulk Supply Agreement which expired last month, Zesco and Copperbelt Energy Corporation have commenced the process of arbitration with the hope of settling their deep-rooted differences.
At the end of March, Zesco proceeded to terminate its Bulk Supply Agreement with CEC over a tariff dispute, effectively ending a 20-year business relationship.
But in a notice to Shareholders, CEC says arbitration matter with Zesco is in process and remains under adjudication.
“Shareholders are referred to the cautionary announcement, dated 27th September 2019, issued by the Board of Directors of CEC informing the market that CEC was in receipt of a notice of intention to arbitrate from Zesco Limited, pursuant to the Bulk Supply Agreement and Article 3 of the UNCITRAL Arbitration Rules 1976, resulting from ZESCO’s claim that CEC has failed to pay money due to them for electricity supplied under the BSA,” the notice read.
” The amounts outstanding relate to the supply of power by CEC to Konkola Copper Mines Plc. Zesco’s other cited ground is its disagreement with a statement in CEC’s 2018 annual report relating to the contingent liability arising from the 2014 Energy Regulation Board electricity tariff increase specific to the mining companies, which the mining customers have legally contested and were granted a Court injunction, pending the determination of the matter by the High Court for Zambia.”