Fresh escom tariff hike under review
Malawi Energy Regulatory Authority (Mera) says it is conducting an initial scrutiny of the resubmission of the electricity tariff hike proposal.
In January this year, Mera asked Electricity Supply Corporation of Malawi (Escom) to revise its application for the proposed 99 percent electricity tariff hike following the dissolution of Power Market Limited (PML) and the subsequent transferring of the single buyer licence to the State power utility.
In an interview on Tuesday, Mera consumer affairs and public relations manager Fitina Khonje said once set, the regulator will publish the application and announce dates for public hearings.
She said: “Escom resubmitted the base tariff application this month and Mera engaged both Escom and Electricity Generation Company of Malawi to appreciate changes that have been made and thereafter undertake further review of the tariff application.
“We will in due course make an announcement.”
In August last year, Escom and the dissolved PML submitted a 99 percent tariff hike proposal to Mera upon the expiry of the 2018-2022 base tariff schedules.
The proposed 99 percent hike, according to the two parastatals, was meant to cover another four-year period from 2023 to 2026.
In an earlier interview on the sidelines of the Malawi Electricity Access Project tour by the Parliamentary Committee on Climate Change and Natural Resources, Escom chief operations officer Maxwell Mulimakwenda said the power supplier is committed to reinforcing the grid and increasing connection, but requires resources.
He said: “We are just making a plea through you chair that when we submit the tariff proposal, please support your company.
“Whenever there are things that we need to improve, please point them out, but support us where we need resources.”
But the committee’s chairperson Werani Chilenga said they cannot advocate for an electricity tariff hike when Malawians are going through tough economic times.
He said: “People’s businesses have collapsed. If you look at the way people are accessing electricity, it is like there is no electricity that people are paying for or we can have a tariff increase for.
“They have sent the proposals to Mera, the best is for us to wait.”
Consumers Association of Malawi executive director John Kapito is on record as having said that Escom is not justified to increase tariffs, saying it has failed to perform to the expectations of Malawians.
On the other hand, Malawi Confederation of Chambers of Commerce and Industry warned that the proposed electricity tariff could make it tough for businesses to operate as higher tariffs are detrimental to meaningful production.
In August last year, Escom and PML jointly submitted the proposed tariff upon the expiry of the 2018-2022 base tariff schedule.
The proposed 99 percent hike, according to the two parastatals, was meant to cover another four-year period from 2023 to 2026.
Under the 2022-2026 Electricity Base Tariff Application, Escom and PML wanted electricity tariffs to be hiked by 80.75 percent from the current K104 per kilowatt hour to K187.98 in the first year of implementation.
