An Energy Expert observes that Minister of Energy Mathew Nkhuwa is on firm ground to direct Zesco and Copperbelt Energy Corporation (CEC) to resume talks on the Bulk Power Supply Agreement impasse.
Speaking in an interview with Money FM News, Yotam Mtayachalo said it is good to note that the two institutions are about to engage each other in negotiations, so that issues surrounding the Bulk Supply Agreement are resolved as soon as possible.
Mr. Mtayachalo stated that if the matter between the two parties is not resolved urgently, it will have a negative bearing on the mining industry and may also affect investor confidence because it has dragged for a long time.
“It is a good move that the two parties that is Zesco, and Copperbelt Energy Corporation (CEC) are about to engage each other in negotiations, so that the issue surrounding the bulk supply agreement is resolved amicably as soon as possible.”
“This issue has dragged for quite a long time, and its brining a lot of uncertainties in the mining industries. If this matter is not resolved expeditiously between the two parties, I think that it will have a negative bearing on the mining industry and also as far as investors are concerned,” Mr. Mtayachalo said.
Meanwhile, Mr. Mtayachalo said the new agreement which is going to be signed between Zesco and CEC should have mutual benefits unlike what it was previously, as it was disadvantaging the country’s power utility firm.
He observed that the two entities play a very critical role in the electricity sub sector, hence any disturbance in the supply of power has far reaching negative consequences.
“It was not making any economic sense to supply power to CEC at a very low price, while CEC has been selling power to the Mines at a very high cost, so we hope that the new agreement will answer these issues, so that Zesco is not disadvantaged neither is CEC also disadvantaged.”
“We all know that the mining industry accounts for more than 70 percent of Zambia’s foreign exchange earnings, so any disruptions in the operations of the mining sector affect Zambia’s economic development. So I am happy that at least now, the two parties are now able to talk,” he added.
Recently, Energy Minister Mathew Nkhuwa directed Zesco and Copperbelt Energy Corporation to resume talks on the Bulk Power Supply Agreement (BSA) impasse.
And last week, Zesco disclosed that it has written to CEC to resume talks on the BSA, stating that the power utility company was more than ready to carry on with talks to arrive at an agreement on new terms.