Escom debt hits K40 billion

Escom debt hits K40 billion – Wants new Government and tax payers to pay

Post was last updated: July 21, 2020

Debt accumulated by Electricity Supply Corporation of Malawi (Escom) has surged to about K40 billion, Minister of Energy, Newton Kambala, said Monday.

Kambala said this during a familiarisation tour at the Chichiri Escom power station.

Kambala said he will be engaging with Escom management on loan repayment.

“I have already received a report from Escom management that they are struggling with debts from banks and they have little access to loans from suppliers because they have not paid them for a long time.

“The last figure that I heard was K40 billion and I will need an explanation from them,” Kambala said.

He then urged Escom management to account for the debt and be efficient going forward.

Escom Chief Executive Officer, Alexion Chiwaya, attributed the rising debt to lowering revenue due to Covid-19.

“We do not have enough supply yet our system can carry three times more and there are other customers who are not paying. This is why we want to go for prepaid billion for industry,” he said.

An energy expert, Grain Malunga, urged Escom to prudently use the prepaid system.

In 2018, the Escom debt hit K54 billion.

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