A fresh proposal is being made for Capital Hill to consider dissolving the Electricity Generation Company – EGENCO.
EGENCO was created to solely generate power following the unbundling of the Electricity Supply Corporation of Malawi – ESCOM in 2018.
According to the Consumers Association of Malawi – CAMA Executive Director John Kapito, dissolving EGENCO will help ease the burden which Malawians are facing in paying for electricity.
Kapito is of the strong view that having the two sister companies operating simultaneously is almost redundant.
“The first application by ESCOM was about 99 percent and the dissolution of Power Market Limited the tariff has now gone to 69. The more you take out EGENCO you will see it reduced further to 35.” He said.
The consumer rights campaigner added that; “what we are doing now is the same as funding institutions that do not add value to the distribution and supply of electricity.”
Last year, the Parliamentary Committee on Natural Resources described the decision to unbundle ESCOM as flawed and suggested that the new entity be dissolved.
And recently, the government dissolved Power Market Limited and returned the Single Buyer License to ESCOM.