Escom told to hand over single power system to PML

Malawi Energy Regulatory Authority (Mera) has said it currently recognises Power Marketing Limited (PML) as the institution handling the single buyer system.

It has since called on Escom to only handle what is within its mandate.

Mera said this yesterday at a Parliamentary Committee on Natural Resources and Climate Change meeting in Lilongwe.

Last year, during a meeting between the committee, Ministry of Justice, Electricity Supply Corporation (Escom), PML, Mera and other stakeholders, the Office of the Attorney General (AG) advised that the single buyer system should be transferred from Escom to PML by December 31 2021.

However, there is little progress in having PML manage the single buyer system as Escom still manages the bulk transaction and stabilisation account that PML is supposed to handle.

Failure to finalise transfer of the function of single buyer system to PML forced the parliamentary committee to engage both Escom and PML to appreciate efforts that had been made to resolve outstanding issues.

Mera chief executive officer Henry Kachaje told the committee that Escom no longer has the power to manage the single buyer system as PML is the one licensed to handle it.

He said what is remaining is the management of the bulk transactions and stabilisation account that is currently under Escom.

“As we stand now, I can confirm to this committee that all the single buyer functions as stipulated in their licence are with Power Market Limited.

“The only remaining issue we need to finalise is the transfer from Escom to PML of the bulk transaction and stabilisation account. This is still not finalised because there were issues and are being looked into,” said Kachaje.

He added that they communicated to Escom that it needs to only carry out functions within its mandate.

Kachaje assured the committee that Mera will follow up on the transfer of the bulk transaction and stabilisation account so that it is transferred to PML by February 4 2022.

But PML chief executive officer Rosemary Mkandawire called on Escom to ensure that the matter of transferring the account is properly done so that the country benefits from the operations in the energy sector.

She said operations of PML are currently suffering because management of the account has not been moved to them.

“We know the consequences of transferring the management of the account from Escom to PML but there is a need for both parties to come together and ensure that the account is managed by PML,” she said.

Mkandawire lamented that some power generation companies are also failing to invest in the country because of the account conflict.

Escom board chairperson Fredrick Changaya said they are waiting for guidance from the Ministry of Energy, Treasury and Office of the President and Cabinet as the Escom board expressed concerns on having the power transferred.

However, he said Escom will do whatever it can do to ensure that the matter is resolved and that they will ensure that the energy sector operates to its full potential.

The committees chairperson Welani Chilenga said the issue of the single buyer system needs to be seriously handled if the country is to progress on increasing power supply in the country.

Egenco was entrusted with power generation with PML handling single power buying system while Escom was entrusted with transmission and distribution