Escom Union threatens to down tools
Electricity Supply Corporation of Malawi (Escom) Staff Union will from Monday close all the corporation’s offices in protest against its failure to resolve issues surrounding the operationalisation of the Power Market Limited (PML).
According to a letter dated October 25 2021 and signed by the union’s secretary general William Mnyamula, the union argues that it feels betrayed by government for not honouring a last October meeting resolution that an independent review on the viability of PML be conducted between then and September 30 2021 and that any further handover activities be put on hold.
PML was created as part of the power sector reforms project, a component of the $350.1 million (K242 billion) five-year Millennium Challenge Corporation (MCC) energy compact, that aimed at improving power generation, transmission and distribution infrastructure.
In December 2020, Malawi Energy Regulatory Authority (Mera) granted PML licence under Section 3 of the Electricity Act to buy all electricity from independent power producers (IPPs), including importing and selling this electricity in Malawi.
The union is of the view that creation of another company with the mandate of buying power is unreasonable, illegal and without justification and would deprive Escom of its single buyer licence.
In a complaint sent to the office of the Ombudsman in June this year, the union argued that Escom is the sole legal holder of the systems and market operator and single buyer as provided for under Section 5 (2) of the Electricity Act whose licence is valid for 25 years as provided for under Section 12 (1) (e) of the Electricity Act.
Malawi Congress of Trade Unions (MCTU), an umbrella body for workers unions in the country, has indicated that it is aware of the impending industrial action and is asking government to come to the negotiating table to avert pending crisis.
In an interview on Thursday, MCTU secretary general Madalitso Njolomole said: “We are following up on the issues and Escom Staff Union has been advising us on the steps being taken.”
Ministry of Labour spokesperson Christina Mkutumula yesterday said the ministry was not ready with a comment on the matter.
Meanwhile in a letter dated October 28 2021, Escom acting chief executive officer Clement Chiwaya has pleaded with the staff not to proceed with the action, but to give dialogue a chance.
Director of Energy in the Ministry of Energy Cassius Chiwambo, in an earlier interview, indicated that government had three options—to roll out PML, to revert to the earlier arrangement where Escom was the single buyer or let both PML and Escom buy the electricity from IPPs.
In an earlier interview Consumers Association of Malawi executive director John Kapito argued that the country does not at the moment need a company solely to buy power.
Said Kapito: “We have been discussing this with government and we have been advising government to have such a company at a later stage when the country is generating enough electricity.”
