Electricity Supply Corporation of Malawi (Escom) says government ministries, departments and agencies (MDAs), the private sector and individuals owe it about K54 billion in unpaid bills, spanning one month and beyond.
The situation has forced the power utility to embark on a 14-day mass electricity disconnection campaign targeting all customers with outstanding post-paid electricity bills.
In a written response yesterday, Escom chief public relations and communications officer Pilirani Phiri said the institution needs liquidity to fulfil its commitment to power the country’s development, maintaining a stable grid and improve service delivery.
He said: “Currently, outstanding arrears from various institutions have reached about K11 billion for MDAs, K26 billion for water boards and K17.5 billion for private entities.
“Escom is currently bleeding and these funds are critical for our operations. We have engaged these institutions and while we regret the necessity of disconnections, our priority must be the sustainability of the entire power system for all Malawians.”
In a public notice on Friday, Escom said this is part of its intensified revenue collection strategy aimed at recovering long-standing arrears to sustain reliable service delivery.
“In the event of disconnection, power supply will only be restored after full settlement of arrears plus applicable reconnection fees. We remain committed to providing reliable power supply. However, this is only possible when all beneficiaries of our services fulfil their payment obligations,” reads the statement.
Commenting on the development, Consumers Association of Malawi executive director John Kapito said consumers have an obligation to pay what they consume.
However, he said Escom presents a different issue altogether, arguing, people have discussed their challenges regarding payments, but the utility provider does not seem to change.
Said Kapito: “Suggestions have been made, one of which was to ensure that every user has prepaid meter. One wonders, what else do they want? So, I think it is becoming annoying for consumers to go through that.
“Why can’t they say, from this month on, we are going to install a prepaid meters and if one is disconnected, reconnect only with a prepaid meter. If they will go away, Escom needs to grow, but there is something to ask about.”
Centre for Social Transparency and Accountability executive director Willy Kambwandira said the revelations do not only expose weak inter-agency accountability but also shows a growing culture of impunity among MDAs.
“Sadly, the revelations mean taxpayers are paying twice; first through budget allocations to MDAs that don’t settle the bills, and secondly through bailouts or tariff hikes to rescue Escom,” he said.
On his part, Mzuzu-based social commentator Isaac Cheke-Ziba said controlling officers must be held personally accountable for persistent non-payment, arguing, public office cannot continue to provide immunity from basic financial responsibility.
Centre for Democracy and Economic Development Initiatives executive director Sylvester Namiwa also said it was strange that MDAs enjoy annual budgetary allocations from the taxpayer, yet they are failing to pay utility bills.
Last month, the Malawi Energy Regulatory Authority approved implementation of a 12 percent electricity tariff increase, a third for Escom under its four-year tariff adjustment schedule.
Following the increase, consumers are now paying an average of K160.13 per kiloWatt-hour (kWh), up from the previous K142.98.
