ESCOM puts on hold Power Purchase Agreements

Electricity Supply Corporation of Malawi (ESCOM) has put on hold Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) pending review following revelations of suspicious activities by some applicants.

ESCOM Chief Executive Officer (CEO), Kamkwamba Kumwenda made the remarks in Lilongwe at a joint press briefing with Ministry of Energy and Malawi Energy Regulatory Authority (MERA).

PPAs development follows dissolution of Power Market Limited (PML) which has seen ESCOM retaining the single buyer license in he power distribution market.

Kumwenda said they noticed that some applications were not adding up as initial clients are not the ones coming forth to roll out implementation hence raising questions of miscellaneous third party agreements to other investors.

Kamkwamba added that about 19 agreements out of the many in review are dated on the eve of the 2019 tripartite elections but refused to be drawn to comment whether political power was at play.

Secretary for Energy, Engineer Alfonso Chikuni said almost all functions which were handled by PML are now in the hands of ESCOM including interface with IPPs and PPA arrangements.

Chikuni added that, currently, the demand for electricity is at 12 percent of the population