PML told to withdraw proposed tariff hike

A joint committee of four parliamentary committees has called on Power Market Limited (PML) to withdraw submission of the proposed electricity tariff hike, saying it is a burden to Malawians.

The joint committee, comprised of Parliamentary Committee on Natural Resources and Climate Change, Public Accounts, Legal Affairs and Committee on Trade and Industry, made the call on Thursday (August 25, 2022) when PML officials appeared before the committee to explain various issues in the power sector including the proposed 99 percent tariff hike covering a four year period, from 2022 to 2026.

Co-chairperson of the committee Welani Chilenga said  he was tempted to believe that the coming of PML will subject Malawians to expensive electricity tariffs.

He said PML move to have stabilization fund  that has been allocated a tariff in the proposed hike, will burden Malawians more. He said Malawians are being punished for nothing adding there is no point to have Malawians paying for something that they have not consumed.

“You should be feeling pity for Malawians. Malawians are going through financial challenges and you are burdening them more. Be a good PML and not bad PML,” said Chilenga. 

He called on PML to withdraw the submission it made to Malawi Energy Regulatory Authority (Mera) for the electricity tariff hike.

He said Malawians need to be protected and PML should have been in the front to vet the proposed tariffs.

Another co-chairperson of the committee Ned Poya stressed that Malawians are going through difficult economic situations and to raise the tariff will be like milking the already thin cow.

“Malawians will suffer. We need to come up with ways of protecting or shielding Malawians in as far as these things are concerned.

“We cannot just raise tariffs when we don’t have power. What for? People are supposed to have power to run their businesses effectively. Thereafter it is when we can talk about tariff increase,” said Poya.

Poya wondered why stabilization fund was being introduced when the country is facing power challenges. He questioned what Malawians will be contributing for when there is no power for people to carry out their businesses.

PML chief executive officer Rosemary Mkandawire said they have taken note of the committee’s stand on the matter. She said there is need for further engagement on the matter.

However, Mkandawire earlier called on members of parliament to give a thought to the proposed electricity tariff hike. She said  there is need to consider which is viable between letting Malawians pay less and  continue to have the power challenges the country is going through or pay more to improve on services and secure the future.

She lamented that  electricity access in Malawi is still very low, now at 11 percent on grid and about six percent off grid. She said there was need to invest more to promote access.

“We are behind when it come to electricity access, other countries are moving towards 100 percent access,” said Mkandawire.

She added that investing more in energy sector  will attract investments, create jobs for the youth but also boost the economy.

The players in the power sector are seeking tariff hike to manage their operations but also expand the power sector to ensure that more people are connected.

Escom plans to be connecting 150 000 customers per year but also clear a backlog of 72 000 applications.

The country has been experiencing power challenges due to low investment in the sector. Currently the power sector has about 400 megawatts on grid.

President Lazarus Chakwera has time and again said the country needs to achieve 1000 megawatts by 2025.