Malawi: Escom in Debt of US$3 Billion to Egenco on Power Generation

  • Escom owes Egenco US$3 billion on power generation bills.
  • Egenco requires the funds to fix its faulty power plant.

The Electricity Generation Company (Egenco) has announced a staggering K57 billion ($3 billion) owed by the state-owned utility, Eskom, on power generation bills. The utility noted that the debt had hindered efforts to restore the damaged Kapichira power plant.

Malawi continues to face prolonged power blackouts in what Egenco officials say is a result of the damaged equipment at Kapichira Hydro Power Station due to cyclone Ana triggered floods. In January 2022, Egenco lost about 130MW, 30 per cent of power from the national grid after the Kapichira power plant was shut down due to flooding.

Egenco officials note that K18 billion is needed to restore the destroyed power station. Escom officials are yet to comment on the matter.

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