The High Court in Blantyre has ruled in favour of Electricity Supply Corporation of Malawi (ESCOM) Limited, declaring that purchasing electricity units from a parallel market is both unlawful and illegal.
The ruling relates to a case between ESCOM and Zhang DI t/a Yangste Company, which commenced on May 17, 2022, over subsidized electricity units that the claimant allegedly bought from former ESCOM employees. The company sued ESCOM seeking over K400 million in refunds and damages after the corporation reversed 801,621 kilowatts of power from its meters.
Delivering the judgment dated June 19, 2025, High Court Judge Justice Chifundo Kachale stressed that purchasing electricity units from unauthorized persons constitutes an illegal act.
Justice Kachale said there was clear evidence that the units in question were procured from individuals who had no legal authority to supply or sell electricity. Furthermore, the Judge noted that the electricity meters of the claimant were tampered with to enable illegal consumption of electricity.
“All these actions and activities flouted the statute and by-laws under which electricity is traded in this jurisdiction. The present proceedings are hereby dismissed with costs for being an abuse of the court process,” concluded the ruling.
Reacting to the decision, ESCOM’s Chief Executive Officer, Kamkwamba Kumwenda, said the ruling is a significant victory in the fight against illegal electricity transactions and reinforces ESCOM’s exclusive mandate in electricity supply.
“As ESCOM, we welcome the ruling in its entirety. It affirms that the mandate of supplying and selling electricity in Malawi rests solely with ESCOM.
Therefore, buying electricity units from parallel markets is illegal and unlawful,” said Kumwenda.
Kumwenda further emphasized that the ruling sends a strong message to the public and stakeholders that ESCOM will not tolerate any activities that undermine the integrity of electricity distribution in Malawi.
“This judgment not only protects ESCOM’s operations but also safeguards law-abiding customers who access electricity through proper channels. It’s a warning to anyone involved in these illegal schemes including former staff and commercial entities that such practices are not only unethical but criminal,” he added.
