CAMA warns that revival of Power Market Limited risks higher electricity tariffs and continued drain on public resources

The Consumers Association of Malawi (CAMA) has strongly criticised government’s decision to revive Power Market Limited (PML), warning that the move could lead to higher electricity tariffs while continuing what it describes as unnecessary administrative costs that do not improve service delivery.

The concerns come after the High Court in April 2026 ruled to end the voluntary winding up of PML, effectively bringing back the state-owned electricity trading entity as part of broader restructuring in the energy sector.

CAMA Executive Director John Kapito says reviving PML is a return to a system that previously placed a financial burden on consumers without delivering meaningful improvements in electricity supply or efficiency. He argues that the company was associated with high administrative costs that added pressure to the power sector but did not translate into better services for the public.

Kapito points to a 2023 electricity tariff proposal, which suggested a 99 percent increase, with about 30 percent of that increase linked to PML operational costs. He says this was one of the factors that contributed to the decision to wind down the entity at the time.

According to CAMA, bringing back PML risks repeating the same challenges, where consumers end up paying more money not because electricity services have improved, but because of added institutional costs within the system.

While the association acknowledges that it cannot overturn the High Court decision, it is urging government to reconsider how the electricity sector is structured. CAMA is calling for stronger focus on improving the operations of ESCOM, delaying the full return of PML, and allowing the electricity market to mature through the expansion of independent power producers.

The association says reforms in the sector should prioritise efficiency and reliable power supply, warning that without careful implementation, the revival of PML could increase pressure on already struggling consumers.

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