Parliamentary Committee on Budget and Finance has said it will summon the Ministry of Energy yo explain why Power Market Limited is failing to bring more independent power producers(IPPs) into the country despite getting some of the functions of a Single Buyer Licence, which was formerly with Electricity Supply Corporation of Malawi(Escom).
Ralph Jooma, who sat in for the committee’s chairperson on Wednesday, said committee members were dismayed that PML was failing to bring in more IPPs to the country.
Jooma said it was high time the ministry intervened in the issue so that Escom could give all functions of the licence to PML.
He said, as things stand, Malawi is in a power supply crisis and in dire need of new investors in the energy sector.
”What is happening between PML and Escom is retrogressive as far as [progress of] the energy sector is concerned. For this nation to attract different investors, we need sustainable power, unlike the situation that the nation is in right now.
”We, as a committee, need coordination among all players in the sector. Let every player in the sector do their part accordingly,” Jooma said.
However PML Chief Executive Officer Rosemary Mkandawire said PML has not received all functions of Single Buyer from Escom.
She said Escom has managed to surrender 80 percent of the works under the licence but the remaining 20 percent which is the crucial rate, has not been handed over to them.
”Without Escom transferring the power settlement account to PML, it is very impossible for IPPs to come to Malawi and Invest. The account is an assurance to investors to have trust in the nation.
”We are here to ensure that all players in the power sector work together. We just want Escom to be able to hand over the account to PML, as it is the rightful holder of the licence,” Mkandawire said.
Committee members also faulted Escom for acting illegally as a single buyer of electricity in the country when such responsibility was given to PML.
Source: The Daily Times_May 26, 2022_By Wezzie Gausi