Maravi

KCM, MCM nod CEC's proposed power tariffs

KCM, MCM nod CEC's proposed power tariffs
By Chiwoyu Sinyangwe and Joan Chirwa
Saturday March 01, 2008 [03:00]

MINING giants Mopani Copper Mines (MCM) plc and KCM plc have said the 35 per cent electricity tariffs hike proposed by CEC represents the position of their industry. But Zesco Limited senior marketing and public relations manager Monica Chisela said an agreement had not yet been reached regarding a tariff increment for the bulk power supply to the mines.

MCM commercial director Passmore Hamukoma said the Copperbelt Energy Corporation (CEC) had consulted the mining companies. He said the mines were currently waiting for an outcome of discussions between Zesco Limited and CEC.

“The statement that CEC has made represents the position of the mines on the matter,” Hamukoma said. “We are not going to speak independently because CEC has got the industry’s position and what is remaining is the negotiations between CEC and Zesco.”

And KCM Plc also confirmed that they agree with CEC on the new electricity tariffs under the bulk supply agreement.

Communications advisor Sam Equamo could not, however, confirm the percentage increase that the copper mining giant had agreed with CEC.

“I can confirm that we have agreed with CEC to increase the electricity tariffs,” said Equamo.

On Wednesday, CEC announced that it has proposed a 35 per cent increment to electricity tariffs for the mines under bulk supply agreement.

CEC executive chairman Hanson Sindowe said the electricity distributor had since written the proposed tariffs to Zesco limited for the utility company to effect the new rates.

In an interview, Sindowe described the new tariffs as “cost-reflective” for Zesco Limited.
“We have concluded the negotiation process with the mining companies who are our principal customer,” Sindowe said.

“We have proposed to adjust the tariffs by 35 per cent and the mines have agreed to this adjustment. So we are only waiting for Zesco to approve the new tariffs.”

He said CEC wrote to Zesco limited last December informing them on the proposed tariffs.

But Chisela said Zesco was not aware of the conclusion of negotiations on mining tariffs.

“We are surprised at the statement issued by CEC. As far as we know, negotiations are still going on and there are numerous issues that have to be agreed on before we settle for a certain percentage increase,” Chisela said.

“Zesco and CEC have to agree and issue a joint statement once negotiations are completed. CEC has submitted something but we are still negotiating and not that we have settled for a 35 per cent increase. However, we are getting close to the end of the negotiation period and we will be announcing the results afterwards.”

Zesco through CEC, engaged in negotiations with mining companies before effecting an increase in electricity tariffs under the bulk supply agreement, owing to a boom in copper prices on the international market.

The power utility indicated that the current tariffs for the mines were not cost-reflective, considering that the mining industry was making huge profits as a result of high metal prices.

Labels: CEC, ENERGY, KCM, MCM

posted by MrK @ 8:49 AM