* Maintains that it has never hired and does not intend to hire any diesel generators, whether from within Malawi or from outside the country
* EGENCO already owns diesel generators located at Mapanga in Blantyre, Kanengo, Lilongwe A in the Centre and Lubinga in the North
* The company is not seeking to hire generators, but rather to restore its own generators to operational status
By Duncan Mlanjira
Electricity Generation Company (EGENCO) has refuted reports circulating being amplified by some civil society organisations and media outlets that allege that the company plans to hire diesel generators from external sources.
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In a statement, EGENCO clarifies that in the first place, “it has never hired and does not intend to hire any diesel generators, whether from within Malawi or from outside the country, contrary to claims made in some public statements and social media”.
The company explains that it already owns diesel generators located at Mapanga in Blantyre, Kanengo & Lilongwe A in the Capital and Lubinga in the North.
“Some of these generators are currently non-operational due to the unavailability of critical spare parts,” says the statement, that further clarifies that over the past three years, EGENCO has faced challenges in procuring the spare parts because of foreign exchange constraints.
“As previously communicated, EGENCO’s intention is to rehabilitate and recommission its existing diesel generators to supplement hydropower generation during periods of peak electricity demand.
“The public should, therefore, note that the Company is not seeking to hire generators, but rather to restore its own generators to operational status.”
EGENCO’s hydropower plant at Tedzani
EGENCO highlights that “the Government has demonstrated significant support towards this initiative, with approximately US$8.1 million allocated for the procurement of critical spare parts for both hydropower stations and diesel generation facilities”.
“Payments for the most critical components have already been made, and the procurement process is progressing well.
“EGENCO anticipates that all currently non-functional diesel generators will be back online by December 2026 after receiving these spares under procurement.”
EGENCO also takes note that the fake reports are accompanied with allegations on the cost of operating diesel generators, claiming that the company will require MK32.3 billion per month to operate its diesel generators.
“Using information purported to have been provided in 2017, according to the media report, this figure was derived by multiplying an assumed fuel consumption rate of 500 litres per hour per generator by the prevailing pump price of fuel, 23 generators, and 16 operating hours per day.
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“EGENCO would like to clarify that this figure is inaccurate and based on incorrect assumptions:
* Firstly, the fuel consumption rate of 500 litres per hour is not representative of actual operations. Diesel generators are not continuously operated at full load and, therefore, do not consume fuel at this rate under normal operating conditions;
* Secondly, fuel used for electricity generation is not procured at retail pump prices. The pricing structure for fuel used in power generation differs from that applicable to motor vehicle fuel and does not include certain levies, making it relatively less expensive; and
* Thirdly, it is incorrect to assume that all 23 generators operate simultaneously for 16 hours each day. Diesel generators are dispatched based on system requirements and are primarily used during peak demand periods, including morning, midday, and evening peaks.
In addition, not all generators are operated every day. Consequently, fuel consumption and operating costs vary depending on prevailing demand and the number of units required at any given time.
Nkula Hydro Station
EGENCO thus emphasises that it is “misleading to present a fixed monthly operating cost based on assumptions that do not reflect actual operating practices”.
“EGENCO values the important role played by civil society organisations and the media in promoting transparency, accountability, and national development.
“We also appreciate the cordial and constructive relationship that the Company continues to enjoy with these key stakeholders.
“However, we respectfully appeal to all stakeholders to engage EGENCO directly whenever clarification or information is required on matters relating to the Company’s operations.
“Obtaining up-to-date information from the source helps to ensure accuracy and prevents the dissemination of misleading or incomplete information.
“EGENCO remains committed to addressing the challenges facing the power sector and to improving electricity generation for the benefit of Malawians.
“We deeply appreciate the continued support and cooperation of all stakeholders, including civil society organisations, the media, Government, and the general public,” concludes the statement.
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