Government has backed the current water and electricity tariff hike saying it is the only way that will allow the Electricity Supply Corporation of Malawi (Escom) and water boards to maintain machinery used in their service delivery.
Speaking in Parliament on Friday, Minister of Finance Ken Lipenga said the aim of the tariff hike was also to reflect the changes in the production costs as government has now stopped subsidising utilities.
“These measures are meant to ensure that there is improved service delivery by Escom and the water boards. Let me also emphasise that government has moved away from subsidies in the utilities sector,” he said.
Lipenga said the role of government is to now regulate the sector and to invest in proactive capacity.
He said: “In addition, it is common knowledge that energy subsidies tend to benefit rich people more than they benefit the poor.”
He further said energy subsidies only increase levels of government debt which may cripple the economy if it becomes excessive, thereby increasing poverty rates—Mana
