After posting K10.3bn profit last year, Escom says it has registered K59.6bn loss this year
In a startling admission, the Electricity Supply Corporation of Malawi (Escom) has said it has, this year, registered a loss of K59.6 billion.
This is coming after the power utility entity registered a profit of K10.3 billion in 2023.
Addressing the Budget and Finance Committee of Parliament in Lilongwe today, Escom Chief Executive Officer Kamkwamba Kumwenda said the loss has been made due to several reasons.
He added, for instance , the entity had to lose about K83 billion in exchange rate due to devaluation.
In November last year, Malawi’s currency has lost nearly half its value against the US dollar, sparking concerns from some consumers in the country that basic goods will soar in price.
Others, however, hailed the central bank’s devaluation move as “overdue”.
The bank’s 44% decrease was brought in to better reflect the kwacha price in different markets.
Meanwhile, Kumwenda said Escom has been facing more costs to pay than revenue made as tariff revenue is controlled by Malawi Energy Regulatory Authority (Mera).
