The Parliamentary Committee on Natural Resources and Climate Change, suggested that electricity prices could be lower if Agrekko Power Solutions is relieved from the contract of supplying energy, to pass the contract to Electricity Generation Company (Egenco).

Aggreko is currently supplying diesel powered generators, which according to the committee, cost over K675 million per month in power purchase deals.  However, the Malawi Energy Regulatory Authority (Mera) Chief Executive Officer, Collings Magalasi, said the committee’s recommendations were misconceptions, as pricing of electricity is based on cost of production.

Magalasi was speaking when four ministers who are in Cabinet committee on energy overseeing the implementation of projects in the energy sector, visited Wovwe Hydroelectric Plant in Karonga District yesterday.

“Let me state that pricing of electricity will not be cheaper because the generators are being run by Egenco, no. The price will be the same; in fact, the price will be more expensive. Why? Because all the pricing of electricity in this country is done on what is called cost-based,” he said.