ZESCO MADE TO LOSE $1BILLION
By Amb. Emmanuel Mwamba
In 2014, ZESCO obtained approval from the Energy Regulation Board (ERB) to increase electricity tariffs for the mine companies to 28 percent under the bulk supply agreement.
Another increment for the mine houses was made in 2016.
Lumwana, Kansanshi, Lubambe, Mopani, Chibuluma, NFC Africa and Chambeshi Metals challenged ERB, ZESCO and CEC for increasing tarrifs despite the bulk agreements made between ZESCO and CEC.
They obtained an injunction and did not need to pay the electricity bills at new rates since 2014 to allow the court to provide a judicial review of ERB and ZESCO’s decision.
It has now been announced that ERB, ZESCO and CEC have entered into a Consent Judgment with the seven mining companies which discharges their obligations to pay the invoices of the new electricity tariff effected in 2014.
So the contingent liabilities by the mining companies estimated at over $1billion will not be paid to ZESCO!
The mining companies consume over 50% of power generated by ZESCO.