Malawi Ministry of Energy: MOMA Interconnector Tariffs Discussions Underway

• Construction of the Malawi-Mozambique (MOMA) 400kV Electricity Interconnector is complete, with initial hot-commissioning occurring on August 8, 2026.
• An initial 5 MW of electricity was imported from Mozambique to test commercial metering equipment at the Matambo Substation.
• Full commissioning was delayed due to a fatal workplace accident on the Mozambican side, which necessitated a review of safety measures.
• The Ministry of Energy, ESCOM, PML, and EDM are currently engaged in tariff negotiations to enable commercial power trading.
• Consumer advocates are urging that all tariffs for imported electricity be genuinely cost-reflective and not arbitrarily set.

Consumer advocates are urging that any tariffs established for electricity imported through the interconnector must be genuinely cost-reflective, rather than arbitrarily determined.

The long-anticipated 400kV Electricity Interconnector connecting Mozambique and Malawi, known as MOMA, has successfully completed its construction phase. This significant development paves the way for commercial power trading between the two countries, though tariff negotiations remain ongoing before full operationalization. The Ministry of Energy confirmed this milestone in a statement issued on Monday, signed by Secretary for Energy Elvis Thodi, highlighting its importance for Malawi's access to additional power sources and integration into the Southern African Power Pool (SAPP) via Mozambique.

The interconnector was hot-commissioned and energized on August 8, 2026, marking a crucial step towards its full operation. During this initial phase, 5 megawatts (MW) of electricity were imported from Mozambique, primarily to facilitate the testing and commissioning of commercial metering equipment located at the Matambo Substation. While construction on the Malawian side of the project concluded on schedule in February 2025, the overall commissioning faced delays due to issues on the Mozambican side.

Work on the Mozambican section of the project was temporarily suspended following a fatal workplace accident. This suspension was necessary to allow for a comprehensive review and strengthening of safety and safeguard measures before construction could resume. With these issues now resolved, the focus has shifted to finalizing the commercial and regulatory frameworks required to enable the consistent flow of electricity.

With the physical infrastructure now complete, the Ministry of Energy, in collaboration with the Electricity Supply Corporation of Malawi (ESCOM), Power Market Limited (PML), and Electricidade de Moçambique (EDM), is actively engaged in finalizing tariff arrangements and other essential commercial details. These discussions are critical for establishing the terms under which electricity will be imported from Mozambique into Malawi.

Secretary for Energy Elvis Thodi emphasized that these tariff negotiations and subsequent agreements are indispensable for ensuring that electricity imports through the MOMA interconnector are not only safe and reliable but also sustainable and commercially viable. The outcome of these negotiations will directly influence the economic feasibility and long-term success of this cross-border energy initiative, which is central to Malawi's energy security strategy and its ambition to leverage regional power resources.

As tariff discussions progress, consumer watchdogs in Malawi are voicing caution regarding the pricing structure for imported electricity. John Kapito, Executive Director of the Consumer Association of Malawi (CAMA), has strongly asserted that any tariffs established for power imported from Mozambique must be firmly rooted in genuine costs, rather than being arbitrarily determined.

Kapito underscored that tariffs are fundamentally derived from various input factors and should reflect actual costs. He warned against setting prices without considering the foundational elements that contribute to a fair and equitable price for consumers. Consumer advocates are urging that any tariffs established for electricity imported through the interconnector must be genuinely cost-reflective, rather than arbitrarily determined, to protect the interests of Malawian electricity users.

Lawyers advising energy sector clients or large industrial consumers in Malawi should closely monitor the finalisation of MOMA interconnector tariffs, as these will directly impact operational costs, supply agreements, and regulatory compliance for electricity imports. Compliance officers should prepare for potential adjustments in energy expenditure and related contractual obligations once the new tariffs are implemented.

Source: Original reporting via Nyasa Times