Escom dared on smart metering

Southern African Revenue Protection Association (Sarpa) has challenged Escom Limited to increase smart metering systems to reduce technical revenue losses that could potentially burden consumers through pass-on effect. Sarpa president Kenneth Samolapo, speaking during the ongoing Power Institute for East and Southern Africa (Piesa) 2026 conference in Lilongwe yesterday, said Electricity Supply Corporation of Malawi (Escom) Limited has achieved some strides in metering technology. But he stressed the need to continue strengthening the system to substantially reduce the losses in the future.

The call yesterday came at a time the sole power supplier has indicated that government ministries, departments and agencies (MDAs), the private sector and individuals owe it about K54 billion in unpaid bills, spanning one month and beyond. In his address, Samolapo said: “The revenue losses depend on country-to-country. If you look at Escom’s revenue collection rate, it is less than 85 percent.

This means that there is need to automate and modernise the systems through smart metering. “Technical losses should be less than 10 percent because otherwise you will end up pressuring the customers.” Samolapo said the mushrooming of green energy where people acquire solar panels creates challenges for utilities without necessary good tariff structures and efficient metering technologies. In an interview, Escom board member Welford Sabola acknowledged revenue losses that continue to affect the company’s cash flow, but indicated that necessary interventions are being put in place, including putting MDAs on pre-paid meters.

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“In terms of revenue collection, we need to consider issues of scalable meters. We need to consider issues of where Escom is losing money and power losses in the system which we need to deal with. “We have interventions and number one is to ensure that everyone is provided with prepaid meters,” he said.

Sabola describe the three-day meeting, which has attracted energy leaders and experts from the region, as critical because experts are discussing practical solutions to some of the challenges that regional utilities are facing. “This conference is important to Escom because it is going to find solutions which utility companies are supposed to offer. Experts are sharing notes as to how the regional power utilities can contribute to national development,” he said.

In an earlier interview, Consumers Association of Malawi executive director John Kapito said consumers have an obligation to pay what they consume. He said consumers have complained about Escom’s challenges regarding payments, but the utility provider does not seem to change.

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