Escom profits down 67 percent
Electricity Supply Corporation of Malawi (Escom) profit after tax fell from K18.09 billion ($25 million) in 2014 to K8.73 billion ($12.10 million) in 2015, representing a 67 percent drop.
According to a recent Malawi Annual Economic Report 2016, the decline was on account of a 24 percent growth in expenses.
In the year under review, the utility firm spent K43.03 billion on maintenance of its equipment, according to the report.
However,the report indicates that in 2015, Escom power sales improved, after it sold 1 491.18 gigawatts per hour (gwh) more of electricity compared to 1 460.35 gwh in 2014, representing a marginal increase of 2.11 percent.
The report says that domestic consumption increased 13.81 percent in 2015 which was offset by a 3.01 percent decline in industrial sector consumption and an 18 percent decrease in general demand.
Minister of Natural Resources, Energy and Mining Bright Msaka recently told lawmakers that government anticipates the performance of Escom to improve soon.
The sole power utility is currently undergoing major reforms to enhance its efficiency under the Power Sector Reform Project (PSRP), a component of the $350.1 million (about K243 billion) Millennium Challenge Corporation (MCC) energy compact that seeks to improve generation and distribution infrastructure.
On June 22, Parliament passed a law that will facilitate the split of Escom into two entities, a move some legislators fear will lead to job losses at the utility firm and high tariffs for consumers.
