The Electricity Supply Corporation of Malawi (Escom) has reversed free issue of electricity units for various business entities, saying the transactions were contrary to tariff principles and resulted in the corporation’s loss of revenue.

According to letters Nation on Sunday has seen, Ntcheu Kips Express, Crossroads Hotel and Zest Lodge have been told to make immediate payments with Escom’s revenue office to avert a negative balance on their account and deductions at every purchase of electricity units.

A letter signed by Escom chief executive officer Kamkwamba Kumwenda addressed to Crossroads Hotel indicates that about 64 488 of free issue electricity units have been reversed and that the hotel’s account will be charged 58 727 consumed units plus value added tax, meaning the hotel owes Escom about K8.9 million.

Ntcheu Kips Express has also received its own share of the cake as a total of 85 747 of free issue electricity units have also been reversed.

The eatery’s electricity account has been charged K19 334 consumed units plus value added tax, translating to about K2.9 million.

Zest Lodge in Liwonde has about 132 523 of free issue electricity reversed and its account has been charged 117 396 consumed units plus value added tax, thereby owing Escom K17.7 million

When asked to comment on the matter, Crossroads Hotel managing director Sameer Sacranie opted for a no comment response.

Early this week, Kamkwamba told Zodiak Broadcasting Station that since 2018, Escom has been defrauded about K60 billion worth of pre-paid meter units sold by parallel structures to companies and individuals in the country.

He added that about 461 000 properties have so far been red-flagged in the fraud and that the company will name and shame the people involved.

Kamkwamba said Escom and the Electricity Generation Company (Egenco) employees sell their electricity allocations to the red-flagged entities and individuals, making the company to lose about K12 billion annually.

Meanwhile, a statement released by Egenco indicates that the electricity units given to its employees are paid for.

Reads the statement: “Egenco has taken note of the concerns raised in the mentioned media reports and is investigating the abuse of electricity units that it buys from Escom for its employees.

“The public may wish to note that Egenco does not have any system of issuing electricity tokens and has no control of the electricity token system and it is, therefore, the responsibility of Escom for any sales and reissuing of the electricity units.”

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