Electricity tariffs maintained at K57.72
The Malawi Energy Regulatory Authority (Mera) has maintained electricity tariffs at K57.72.kWh having taken into consideration its last tariff adjustment earlier in May when it granted the Electricity supply Corporation of Malawi (Escom) approval to effect the outstanding 8.14 percent tariff increase.
In a statement released Wednesday, Mera said the economic fundamentals that determine tariff increase were below the plus or minus five percent trigger limit.
“Since May this year, economic fundamentals have remained unstable with the kwacha depreciating from K693.50 to the US dollar to K729.63 as of September, 5 2016while inflation increased to 22.6 percent in June. Applying these economic fundamentals to Automatic Tariff Adjustment Formula resulted into 4.62 percent potential upward electricity tariff adjustment,” Mera said in the statement.
The development come at a time when Escom has warned Malawians of extensive blackouts following dwindling water levels in lake Malawi where Escom taps its water for hydro-electric power generation.
Escom says water levels in Lake Malawi have reduced to levels not recorded before in history places challenges on power generation.