By Wezzie Gausi:
The Malawi Energy Regulatory Authority (Mera) has approved the transfer of the country’s Single Buyer Licence from the Electricity Supply Corporation of Malawi (Escom) to Power Market Limited (PML), completing a key reform that changes how electricity will be bought and traded in Malawi.
The decision means PML will now be responsible for purchasing electricity from the Electricity Generation Company (Egenco), independent power producers (IPPs) and regional suppliers while Escom remains responsible for transmitting, distributing and billing customers.
Officials say the separation of these functions is intended to improve transparency, competition and efficiency in the electricity sector, which has for years struggled with inadequate generation capacity, power shortages and limited private sector investment.
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In a letter dated June 26, 2026, Mera informs PML that it has approved the joint application by Escom and PML to transfer the Single Buyer Licence under the Electricity Act after recommendations from its Energy Technical and Licensing Committee.
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“We are pleased to inform you that the authority has, today, the 26th day of June 2026, approved your application for the transfer of the licence under Section 3 of the Electricity Act 2004 as recommended by its Energy Technical and Licensing Committee,” the letter, which Mera Chief Executive Officer Dad Chinthambi has signed, reads.
The regulator adds that PML can immediately begin operating while the formal licence is being processed.
“You may therefore start operating as a single buyer licensee while we are processing issuance of your licence. We will notify you about collection of the licence when it is ready,” the letter states.
The approval follows the government’s broader electricity sector reforms, which seek to separate generation, transmission, distribution and electricity procurement into independent institutions.
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PML Chief Executive Officer Rosemary Mkandawire said the company had started preparations to take over the new mandate.
“Mera has approved the transfer of the Single Buyer Licence from Escom to Power Market Limited (PML), enabling PML to commence operations as Malawi’s designated independent single buyer,” she said.
Mkandawire said PML has been working with Mera, Escom, the Ministry of Energy, electricity generators and other stakeholders to complete the operational, commercial and contractual arrangements that are required for the transition.
“As these arrangements are concluded, PML will progressively assume all single buyer functions in accordance with the approved transition framework with immediate effect,” she said.
Mkandawire said the new arrangement would strengthen confidence among electricity investors because PML would become the institution responsible for power procurement, power purchase agreements and coordination of the electricity market.
For consumers, however, she said there will be no immediate changes to electricity supply or customer services.
“For consumers, there will be no immediate changes to electricity supply, customer service, metering or billing arrangements. Escom will continue to operate the transmission and distribution network and remain the primary interface with customers,” Mkandawire said.
The transfer also comes as Malawi seeks to increase electricity generation capacity through private investment and regional power imports to address persistent supply deficits.The arrangement is seen as a step toward stabilising the country’s fuel sector, which has faced repeated disruptions.
