The Malawi Energy Regulatory Authority (Mera) has approved a four-year electricity tariff hike of 50.8 percent effective September 1 2023.
Addressing the media in Lilongwe yesterday, Mera chief executive officer Henry Kachaje said the Mera board recommended the tariff hike at a meeting on August 29 2023 after reviewing the now-dissolved Power Market Limited proposal of a 99.9 percent increment and later a base tariff application of 69.7 percent by the Electricity Supply Corporation of Malawi (Escom).
Said Kachaje: “Following review of base tariff application by Escom in April, Mera met Escom and the Electricity Generation Company [Egenco], and conducted public hearings in Blantyre, Lilongwe and Mzuzu.
“Escom justified its application and base tariff application, saying it would help to finance its operational and capital requirements for the period 2023 to 2027.”
The authority believes that granting this tariff adjustment, will enable the power sector to realise enough revenue for investments, system maintenance, operations, and other appropriate costs, thereby improving and sustaining provision of services to customers.
To ensure accountability and effective implementation of the base tariff, Mera said it will intensify monitoring of Escom’s performance based on the agreed key performance indicators.
In an interview, Consumers Association of Malawi executive director John Kapito said he finds the adjustment acceptable and hopes that the nation will see a change in the delivery of electricity in the country.
The fresh electricity tariff hike proposal comes against a background of water boards implementing an average 50 percent tariff hike from June 1 this year.
In an earlier interview, Malawi Confederation of Chambers of Commerce and Industry chairperson Lekani Katandula observed that everyone wants reliable services from both Escom and the water boards, as such, supports tariffs that enable them to recover their costs full