…CDEDI maintains PML revival unnecessary
The Electricity Supply Corporation of Malawi (ESCOM) and Power Market Limited (PML) have defended the transfer of the country’s Single Buyer Licence, insisting the move is a necessary electricity sector reform and not a duplication of roles.
The two institutions were responding to concerns raised by Centre for Democracy and Economic Development Initiatives (CDEDI), which argued that the Single Buyer Licence should remain under ESCOM.
CDEDI said the licence complements ESCOM’s transmission, distribution and System Market Operator functions, arguing that reviving PML is an unnecessary reform.
Responding to the concerns, ESCOM and PML said the transfer is part of a carefully designed electricity market reform intended to improve efficiency, transparency and competition in the energy sector.
“The transfer of the Single Buyer Licence from ESCOM to Power Market Limited is not a duplication of roles, but a deliberate and internationally recognised electricity market reform aimed at creating a more transparent, efficient and competitive power sector,” the two institutions said.
They explained that under the new arrangement, PML will exclusively purchase electricity from generators while ESCOM will continue operating the transmission and distribution network, with each institution performing clearly defined responsibilities.
The institutions further said separating the Single Buyer function from network operations will strengthen governance, improve accountability in power procurement and create a more attractive environment for Independent Power Producers and other investors.
“This reform is intended to enhance investor confidence, promote fair competition and ensure that electricity procurement is undertaken independently and transparently for the benefit of the country,” they added.
However, CDEDI Executive Director Sylvester Namiwa in an interview said he remains unconvinced by the explanation, insisting the response does not address Malawi’s real electricity challenges.
“Our position remains that the Single Buyer Lincensee should remain with ESCOM, since it compliments the transition, distribution and System Marketing Operator therefore reviving PML is unnecessary reform,” said Namiwa.
CDEDI said reviving PML is an unnecessary reform, arguing that Malawi’s priority should be increasing electricity generation rather than restructuring systems and operations, saying the current reforms will not solve the country’s persistent power shortages.
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