ZESCO Limited has entered into a long-term agreement with Konkola Copper Mines-KCM following successful conclusion of negotiations that have corrected the imbalances in the power supply chain.

ZESCO Limited Director for Strategy and Corporate Services Patrick Mwila says the artificial imbalances were as a result of the Bulk Supply Agreement that was signed between ZESCO and Copperbelt Energy Plc -CEC- on November 21, 1997.

Mr. Mwila says this had commercially disadvantaged ZESCO before it expired on March 31 2020.

He has however assured the nation that the future of electricity trade in the country is bright following the correction of the imbalance in the supply chain.

And Mr. Mwila says by eliminating monopolistic tendencies, the Zambian electricity sub-sector will soon realize efficiencies because neither ZESCO nor any other owner of Transmission or Distribution Infrastructure can claim exclusivity rights for their use as third parties will be able to supply power across Zambia.

He says ZESCO welcomes the competitive environment and the opportunity to prove that it can compete on a level playing field with the best competitors on the market.

Mr. Mwila says ZESCO is now in a position to compete favorably for the supply of power directly to the mining consumers on the Copperbelt who are able and willing to enter into new commercial relationships which was previously the preserve of -CEC-.

He further explained that with the lapses of the agreement the consumers, ZESCO and CEC are free to buy and sell power from anywhere and supply to anyone as long as the terms and conditions are commercially competitive.

Mr. Mwila adds that the new agreement between ZESCO and KCM confirms ZESCO and Government’s commitment to supporting the whole of Zambia’s mining sector and to ensuring supply to all consumers on the Copperbelt.

He said this in a statement released to ZNBC Business News in Lusaka today.

 Source: https://www.znbc.co.zm/news/zesco-kcm-forge-partnership/