The Malawi Energy Regulatory Authority (Mera) says a requirement by Independent Power Producers (IPP) charging electricity in United States dollars is beyond its regulatory mandate.

The development follows revelation that JCM Power Malawi has been selling its electricity to Escom in United States dollars.

Earlier, the Electricity Supply Corporation of Malawi (Escom) bemoaned the tendency describing it as a raw deal especially in scenarios where the Kwacha has been devalued.

But speaking in Lilongwe during a joint parliamentary committee interface, Mera Chief Executive Officer (CEO) Henry Kachaje said the company negotiated the deal and got an approval from Ministry of Finance and Reserve Bank of Malawi (RBM).

He said: “It is not the mandate of Mera, these are issues that another regulator which is the RBM handles and it’s an area where we wouldn’t want to get involved because it’s the mandate of the Central Bank to manage that aspect.”

The Salima project is the first solar IPP and largest IPP in Malawi and is a result of JCM’s pioneering activities in the country since 2013.

JCM signed a power purchase agreement (PPA) with the Escom and obtained all the permits and Land Agreements, in addition with an Implementation Agreement (IA) signed both Ministry of Finance and Ministry of Energy.

The project entered commercial operation in October 2021.