Minister, parliament quiz EGENCO, ESCOM, MERA over blackouts

Minister, parliament quiz EGENCO, ESCOM, MERA over blackouts

Minister of Energy Ibrahim Matola says a report of the findings on the prolonged power outages will be released within 24 hours.

Matola was speaking with the media following separate meetings with Egenco and ESCOM management in Blantyre on persistent blackouts the country continues to experience.

While assuring Malawians of the findings, the minister denied revealing the outcome of the two meetings.

Matola said will conduct a joint meeting with the two utility companies before reporting to the president to get direction on how to go about the issue.

He said is aware of Malawian’s anxiousness of the findings but asked for patience until the report is filed.

The investigation is being conducted following a persistent blackout over the weekend.

This is also happening at a time parliament is questioning the utility companies on the same.

However, EGENCO officials denied media interviews saying the fact finding mission by the minister would in a better position to reveal the issues surrounding intermittent power cuts.

Meanwhile ESCOM board chairperson Fredrick while granting media interviews could also not equally disclose causes of the blackouts but denied being at fault.

The country continues to experience intermittent blackouts following the destruction of Kapichira hydro-power station in February this year which resulted to the loss of 130 megawatts.

Meanwhile, an energy expert said the minister of energy’s meeting with ESCOM and EGENCO officials will help the minister to iron out major challenges affecting the country’s energy.

Kandi Padambo says the separation of EGENCO from ESCOM was done in a hurry without putting in place proper ways of how the two companies would operate together.

Padambo said government should consider the blame game between ESCOM and EGENCO a result of lack of good planning.

He cited the request by EGENCO and ESCOM for an increase in Tariff as one of the things resulting from the unbundling which only increased expenditure and not power production capacity.

However, Padambo has asked government not to interfere in the operations of the two companies.

In what could be said as a twist of events, Malawi Energy Regulatory Authority has quashed ESCOM’s claims that the unbundling of ESCOM is the root cause of the persistent power outages happening in the country.

Speaking when he was appearing before joint Parliamentary Committee on, public account, legal affairs, trade and industry and climate change, MERA Chief Executive Officer, Henry Kachaje, said the blackout is a result of Cyclone Ana that damaged Kapichira.

Kachaje said ESCOM is currently handling all finances regarding electricity sell and therefore should not complain that they do not have enough money to run their activities effectively.

The CEO has revealed that they have applied to the ministry of justice for amendments to the energy laws which he said are also affecting their regulatory functions

Speaking at the same Chimwemwe Dankalo, MERA’s Director of Economic Regulation said they are still assessing the tariff Application and Malawians will soon be informed of its stand to hike electricity tariffs in November.

He said they are currently publishing the Application to get views from Malawians on the tariff Application and later MERA board will look into the recommendations.

In his remarks, Chitipa central parliamentarian who is also chairperson for Parliamentary Committee said there is no need to do consultations on ESCOM and EGENCO request to increase electricity Tariffs.

Werani Chilenga, said the two companies have failed to supply electricity to the country and therefore should not raise their tariffs.

The committee has since asked MERA to effectively play its role in resolving the conflicts between the energy sector players.

Earlier this month ESCOM had asked MERA to have their tariffs raised by 99%.

Meanwhile, Centre for democracy and economic development CDEDI says government should commit financial resources from national budget to meet revenue requirements of power market

In a statement released after joint parliamentary committee of natural resources and climate change with EGENCO and ESCOM officials CDEDI executive director Sylvester Namiwa says this will avert imminent electricity tariff hike

Namiwa says government should stop EGENCO from milking ESCOM with immediate effect

He has demanded tonse alliance administration to review power purchase agreements that are not making sense including JCM contract for the sake of ordinary people to access affordable electricity

Namiwa called for intervention to resolve wrangle between PML and ESCOM

 

 

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