In Malawi, minister of energy, mining and natural resources Bright Msaka, has publicly declared that government has now registered a new energy company by the name of EGN Co.
Msaka said the company will be generating power and selling it to national electricity utility, ESCOM, in hopes to ease frequent power outages.
“We have now incorporated a new power producing company called EGN Co. It is now an independent company of the mainstream ESCOM,” he said.
Msaka outlines new company role
The minister explained: “The company will be responsible for production issues and it will be in charge of Nkula, Tedzani, Kapichira falls plus other smaller installations.”
Msaka added that EGN Co will continue introducing new power generation projects, media reported.
It is reported that the development comes months after parliament passed an electricity amendment bill aimed at bringing more players into the power sector by reducing the roles of ESCOM.
After the unbundling is complete, ESCOM will only be responsible for buying electricity from private companies, as well as for the transportation and distribution of the power to all parts of the country.
Malawi’s power sector lagging behind
In a separate statement, the energy minister has recently expressed his concerns, describing the current persistent and long hours of power blackouts as unacceptable.
During a recently concluded annual forum, Msaka is reported to have said it is sad that Malawi still lags behind in the power sector, which is negatively affecting the economy.
“What the country is going through in the power sector is unacceptable. We need to have electricity blackout solutions,” Msaka stressed.
According to media he said it was not understandable that ESCOM is failing to provide electricity to the nation, yet only 10% of the 17 million Malawians are connected to grid power whilst some neighbouring countries have a 85% connection rate.
“Power has been a key constraint to the country’s development. Similarly, power is a key catalyst to national development,” Msaka noted.