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Government yet to decide on split Escom debts

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Government is not yet decided on how the debts accumulated by Electricity Supply Corporation of Malawi (Escom) before its long awaited split will be handled.

Ministry of Natural Resources, Energy and Mining last week announced the formation of Electricity Generation Company (Egenco) which will take up electricity generation as part of power sector reforms.

However, with Egenco which will take over Nkula, Tedzani and Kapichira power stations set to rollout, government is undecided on how Escom liabilities will be dealt with.

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“In terms of old liabilities of Escom, the legal minds in government are looking into this matter

“We believe that resolving this issue will not be difficult since the two companies [Escom and Egenco] are both parastatals,” said Maeresa.

The unbundling of Escom, he said, is among the many reforms earmarked for the power sector under Power Market Restructuring (PMR).

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Government is optimistic that the unbundling of Escom will reduce cases of power cuts as it will lead to improved electricity generation.

The unbundling of Escom has happened with technical and financial support from a US$350 million Millenium Challenge Account (MCA) Malawi compact.

Escom currently generates 351 megawatts.

Minister of Energy Bright Msaka is on record saying the splitting of Escom will open up the power market, thereby giving Malawi access to alternative energy sources

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