COPPERBELT Energy Corporation (CEC) that supplies electricity to mines has paid Zesco US$16 million following arbitration.
Zesco, from which CEC buys power for redistribution had claimed that CEC had not fully paid money due to it for electricity supplied under the Bulk Supply Agreement (BSA).
This was in the sum of over US$51.6 million plus interest of US$2.6 million.
Following the arbitration which started in 2019, the sole arbitrator issued a second partial award by consent on November 2, 2021 ordering CEC to pay the principal sum of US$4.2 million plus interest of US$12.2 million.
A statement issued by CEC also says if a court of competent jurisdiction finds that the Energy Regulation Board’s decision to increase tariffs is valid and lawful, an additional amount of US$227 million will be paid to Zesco for power supplied under the bulk supply agreement.
The company says in a cautionary announcement that shareholders should exercise caution in dealing in the company’s securities until further notice and seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.
CEC is listed on the Lusaka Stock Exchange. – ZNBC.