By Kondwani Mhone:
Energy Generation Company (Egenco) has said it is failing to increase its generation capacity due to failure by the Electricity Supply Cooperation of Malawi (Escom) to pay K50 billion dues.
This came out during a visit Minister of Energy, Newton Kambala, paid the parastatal’s facilities at Nkula and Tedzani power stations in Nneno district.
Egenco Chief Executive Officer, William Liabunya, said the arrears have accumulated over the years, since the company started selling electricity to Escom.
“This amount is up to May 2020, we need to reinvest in our facilities and come up with new platforms to generate more electricity but we are somewhat constrained by the money that Escom owes us,” Liabunya said.
After touring the two stations, Kambala held a meeting with Egenco management where he assured them that his Ministry is following up on the arrears and best ways for the electricity supplier to square the bill.
He did not come clear as to whether Escom will be given a bailout to settle the balance.
“The biggest problem we have in Malawi is generation of power so we would like to concentrate on making sure that we increase our capacity to generate power so that most of the people who need it should have it. About the arrears my Ministry is aware and working on a possible way out,” Kambala said.
Kambaka expressed satisfaction with progress made on the Tedzani 4 power station project which is at 90 percent completion.
Tedzani 4 power station is expected to add 18 megawatts to the national power grid by February 2020.
Attempts to speak with Escom spokesperson, Innocent Chitosi, ware futile as his phone went unanswered.
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