High Court of Malawi has thrown out an application for a K400 million claim against Electricity Supply Corporation of Malawi (Escom), stating that the case was premised on illegally obtained electricity.
Businessperson Zhang Di, trading as Yangtse Company, sued Escom in May 2022 demanding at least K400 million in refunds and damages after Escom removed 801 621 kiloWatts of power units from his meters.
He claimed that Escom unfairly confiscated prepaid power units he had purchased from former Escom employees. The former employees allegedly held unused subsidised units when they transferred to Electricity Generation Company (Egenco) during Escom’s unbundling in 2017.
But in his ruling dated June 19 2025, High Court Judge Chifundo Kachale observed that the claimant accessed power below the legal commercial rate through illegal means, adding that the actions flouted the Electricity Act and Escom’s by-laws.
He said: “The electricity units were procured from persons without the lawful authority to undertake such a business.
“There is further evidence to the effect that the meters were tampered with to permit such illegal consumption. All these actions and activities flouted the statute and by-laws under which electricity is traded in this jurisdiction.”
During hearing, the court learnt that an Escom nationwide meter verification exercise established that Zhang’s meters were tampered with, enabling his commercial business to consume electricity at rates lower than the approved commercial tariff.
In his ruling, Kachale said there was “ample proof that the reduction of tariff could not have been possible without several illegalities and irregularities being committed by or for the benefit of the claimant”.
Reacting to the judgement in a press statement issued yesterday, Escom chief executive officer Kamkwamba Kumwenda said the ruling was a victory in the fight against illegal electricity transactions and reinforces the power utility’s exclusive supply mandate.
“As Escom, we welcome the ruling in its entirety. It affirms that the mandate of supplying and selling electricity in Malawi rests solely with Escom. Therefore, buying electricity units from parallel markets is illegal and unlawful,” he said.
Kumwenda said the ruling was sending a strong message to the public and stakeholders that Escom will not tolerate activities undermining the integrity of electricity distribution.
Escom is a State-owned company mandated to transmit, distribute and supply electricity nationwide.
