NARUC - Global Regulatory Network

Profiles

Malawi

National Electricity Council (NECO)

The National Electricity Council is a regulatory body, which was set up under the Electricity Act of 1998 to oversee the Electricity Supply Industry (ESI) in Malawi. The Council became operational on 1 January 1999.

The Current Council members were appointed on 24th August 2003.

The State President appoints Council members. Under the provisions of the Electricity Act 1998, the Public Appointments Committee of Parliament approves such appointments. The appointments are for a two-year renewable term. The Council is supported by a secretariat headed by the Director General and has a staff complement of sixteen (16).

The Council's main regulatory activities include, licensing, tariff approval, inspection of utility substations, and electrical installations and generators, ensuring the maintenance of safety standards in the electricity industry, ensuring the maintenance of high grade and quality service by utilities, and receiving customer complaints and dispute resolution by arbitration and administrative hearings.

The Council's major operating finances are derived from licensing fees from utilities (ESCOM) and a levy on electricity sales from the utilities.

Electricity Industry and Market Structure

The commercial ESI in Malawi is dominated by a publicly owned and vertically integrated power utility, the Electricity Supply Corporation of Malawi Ltd (ESCOM), which was established in 1965. The reforms introduced by the Electricity Act 1998, commercialized ESCOM and allowed it to form into its five business units of generation, transmission and three distribution business units. ESCOM currently holds one Generation, Transmission and Distribution license.

Current Energy Issues

The reforms introduced by the electricity Act 1998, will now be enhanced by the National Energy Policy approved by the government of Malawi through the Energy Regulation Bill 2003, which undertakes to reform the ESI through market restructuring and promotion of private sector participation. The bill also calls for the establishment of a sector wide Energy Regulator to regulate electricity and other forms of energy including gas, liquid fuels, coal and renewable.

Key Statistics (2000)

•Population:
10.55 million

• GDP (US$):
138.72 per capita

• Electricity generation:
  hydro: 285 MW
  diesel: 56 MW
  gas: 15 MW

• Electricity consumption:
937 GWh

• Electricity imports:
None

• Electricity exports:
6.49 GWh

•Installed capacity:
356 MW

• Peak Demand:
227.15 MW

•Electricity prices for households (US$):
3¢ per kWh

•Natural gas production:
None

• Natural gas consumption:
Very small

• Natural gas imports/ exports:
Very small

• Number of gas-fired power plants:
One(1)

• Natural gas price for households (US$):
N/A