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Escoms Change Management Intervention By Government Essay

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The Commercial Electricity Supply Industry Structure is dominated by a publicly owned and vertically integrated power utility. Electricity Supply Corporation Of Malawi Ltd, (ESCOM) which was established by an Act of Parliament in 1957 and was revised 1963 and 1998 respectively. (Power sector reform strategy 2003:27) In this essay we are going to explain the background of ESCOM, its Mission, challenges and the concept of intervention with reference to the interventions government has made to the corporation and also the strategies which government used for this intervention will be outlined.

The Electricity Supply Commission of Malawi (ESCOM) LTD is a public utility which was incorporated under the companies Act of the Republic of Malawi in 1998 with its own articles of Association. It is owned almost wholly by the Government of Malawi (99%), while the remaining shares of 1% are held by Malawi Development Corporation (MDC). Its principal business is to generate, transmit, distribute and retail electricity services nationwide through its interconnected and off-grid power supply systems. The utility handles large portfolio of electricity and civil works, projects of development and maintenance nature to meet electricity demand. Currently the company is undergoing major reforms to align it with the provisions of the energy policy 2003 which calls for the liberalization of the power supply industry. Power Sector Reform Strategy 2003:4)

The mission statement of the utility company is to generate, transmit and distribute electrical energy and provide related services, motivated by desire for excellence through the use of appropriate technologies, to satisfaction of customers and other stakeholders. It’s divided into four distinct business units namely: Generation, Transmission, Distribution and Holding. Power Sector Reform Strategy 2003:4)

ESCOM is faced with big challenge of meeting the ever growing demand for electric power. This challenge has seen ESCOM put in extra efforts to meet the growing demand starting from generation, transmission and all t...

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