BLANTYRE-(MaraviPost)-The country’s utility agency Electricity Supply Corporation of Malawi (Escom) on Tuesday, August 9, 2022 told the news conference that the corporation is in the verge of collapsing amid loses incurring when conducting business.
ESCOM Chief Executive Officer (CEO), Kamkwamba Kumwenda shameless said there is a need to adjust upward end-user tariffs if the power utility body is to sustain its operations.
Kumwenda observes that the state-owned power utility body has been operating at a loss, which cumulatively stands at MK112 billion since its unbundling in 2018.
He disclosed that the company currently buys electricity from power producers at MK140 per kilowatt per hour but sells it to the end-user at MK104 per kilowatt per hour, a thing he said is crippling operations.
“Escom is dying. The choice is ours; either we close Escom or increase tariffs,” Kumwenda said.
ESCOM has not accepted the reforms of unbundling the utility body into three; Engenco and Power Market Limited.