Zambia has declared distribution and transmission lines of Copperbelt Energy Corp. (CEC) as “common carrier”, a move the company described as expropriation.
CEC said the order from Zambian Minister of Energy Mathew Nkhuwa, titled Statutory Instrument No. 57 of 2020 (SI 57) was given shortly before the end of the company’s power supply agreement (PSA) with Konkola Copper Mines (KCM).
Because of this move, CEC is “on the brink of defaulting” on its loans, with the government’s move having taken away its commercial and property rights, it said.
This took effect at midnight on May 31. The company said this followed failed negotiations on the renewal of a bulk supply agreement (BSA) with state-owned power company Zesco.
Source: EnergyVoice via Crude Mix