Mera shoots down MPs suggestion to cancel electricity generators deal with Aggreko

Power regulators, the Malawi Energy Regulatory Authority (Mera) has shot down a suggestion by the parliamentary committee on Energy, Mines and Natural Resources not to renew electricity generators deal with Aggreko.

ACB idenfied procurement flaws in the two-year $73.9 million generators leasing agreement between Aggreko Power Solutions and Malawi

Mera chief executive officer Collins Magalasi said even if Egenco takes over the running of generators, the K1 billion tag bill of running the power gensets would not go down.

In addition, Magalasi said it is against the energy law to let Egenco run the gensets on behalf of Aggreko.

“The only feasible way will be for Aggreko selling power to Egenco and Egenco selling to Escom but this arrangement would be more expensive,” said Magalasi.

The parliamentary committee made the suggestion after noting that K1 billion a month for 78 megawatts of power from the generators was expensive.

Minister of Energy, Mines and Natural resources Binton Kutsaira said the parliamentary committee suggestion was good but the government needed to invest more in Egenco to run the gensets effectively.

 

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