COPPERBELT Energy Corporation (CEC) has predicted high power generation demand to return by the middle of 2017 when the projects by its customers begin to use power.
The company said challenges relating to low commodity prices on the global market had led to some of its customers scaling back on their operations, resulting in power sales dropping by 16 per cent.
This is according to CEC’s summary consolidated unaudited results for the period ended June 30, 2016.
The statement said operationally on the Zambian end, the business in the stated period continued to operate on partial force majeure under the bulk supply agreement with its main power supplier and power supply agreements with mine customers
“This entails that we can only access 70 per cent of our power requirements from Zambian sources while the rest of our requirements had to be sourced outside the country,” read the summary.
CEC also noted that the macro-economic environment in Nigeria and the depreciating Naira had increased foreign exchange risks, resulting in the loss of K1.140 million.
The company said the macro-economic environment in Nigeria continued posing certain challenges to the group’s operations as well as commodity prices which impacted on its customers’ liquidity and ability to meet financial obligations.
“The depreciating Naira resulted in increased foreign exchange risks translating into a loss of K1.140 million,” it stated.