Emmanuel Mwamba writes:
ZESCO breaches Bulk Supplier Agreement by invoking Force Majeure Clause
ZESCO has invoked the Force majeure clause to deny bulk supply of power to companies it has contract with.
Force majeure is a French term that literally means “greater force.” It is related to the concept of an act of God, an event for which no party can be held accountable, such as an earthquake or hurricane or drought.
We hope that ZESCO will also effect the same measure to CEC their biggest customer with a bulk supplier Agreement.
The power utility and Copperbelt Energy Corporation (CEC) signed a 13-year bulk supply agreement (BSA).
Below is the letter being written to its bulk supply customers.
DECLARATION OF FORCE MAJEURE
Reference is made to the above subject matter
Zambia’s Power Sector is currently experiencing a critical situation with respect to
generation and supply of power due to the prolonged drought caused by El Niño,
leading to decreased water levels in the Kafue and Zambezi Basins.
The said position has reduced the country’s hydropower generation capacity thereby
creating a deficit of about 700MW.
Consequently, ZESCO has in the recent past
held engagements with the bilateral customers and other relevant sectors regarding the prevailing situation.
In line with the Republican President’s declaration of National Disaster and Emergency as provided for under the Disaster Management Act No.13 of 2010,
supported by other relevant legislation, we wish to notify you that we have invoked a “Force Majeure” as prescribed by clause eighteen (18) of your Power Supply Agreement(s).
ZESCO is amenable and open to facilitate due diligence visits to our
generation facilities for our customers to appreciate the ful I extent of the
challenges currently prevailing.
Does this mean we the citizens will be blessed with reduced load shedding?
Really zambian observer,
Who is Jaywin Alloy? Why is a letter privately addressed to them being used in this poorly written article?
Zesco how is Mwamba (Mr) obtaining private mail to publish information that you have not publicly released?
Mr. Mwamba what your motive in this article? Bulk Service agreement is a private contract between two parties that only agreed parties would disclose in the event of a dispute and the place at which that dispute is settled is in court or mediation and at mediation records are not public?
Stop infringing on the Privacy of Individuals and institutions to stir your political ploys. Its a very imature way of doing politics. You have run out antiques to pull and sway Zambians. People are not interested in what you or PF have to offer. Dont you get tired?
If force majeure clause is part of the contract then how do you breach the contract.
You start by checking the business address of this jaswin alloys manufacturing, a flat no. at ZSIC Gardens in Lusaka to realise it’s just another misinformation creation of this pfidiot. Next try to google you’ll find nothing to warrant any reason ZESCO would’ve a bulk supply agreement with these fools. Lastly this pfidiot is suggesting ZESCO cuts supplies to CEC, for why so the mines can shut production?? Complete fool this idiot!!