Hajat hits at proposed Escom tariff increase
The Institute for Policy Interaction (IPI) says the Electricity Supply Corporation of Malawi (Escom) should not be allowed to increase tariffs as proposed to Mera.
Escom applied to the Malawi Energy Regulatory Authority (Mera) to increase electricity tariffs for a second four-year tariff base from K31.54 to K49.88 per unit which is an increase of 58.15 percent.
In a petition to Mera, dated November 27 2013, IPI executive director Rafiq Hajat advised Mera not to allow the tariff increase till Escom addresses a number of issues.
Hajat also reminds Mera that Escom hiked tariffs three times in 2012 resulting in a 120 percent cumulative increase.
“There have, over the years, been numerous instances where Escom has procured plant, equipment, tools, cables and meters at grossly inflated prices without any justification, thereby inciting suspicions of rampant corruption within the organisation,” said Hajat in the petition.
He also says Escom is overstaffed which has resulted in cost implications in terms of extra facilities, equipment, workplace and vehicles required to service the bloated workforce.
