By Isaac Salima:
President Lazarus Chakwera will have the final say on whether Electricity Supply Corporation of Malawi (Escom) should proceed to effect a tariff increase.
This is according to Energy Minister Ibrahim Matola.
In December last year, government suspended the 40.92 percent electricity tariff hike which the Malawi Energy Regulatory Authority (Mera) had effected in November 2023.
- Advertisement -
The increase followed the November 2023 devaluation of the Kwacha by 44 percent.
- Advertisement -
Government officials then told journalists in Lilongwe that the suspension was a result of complaints from Malawians, who had been squeezed following the increase in commodity prices as a result of the fall of the Kwacha.
Matola, who was in the company of Escom Chief Executive Officer Kamkwamba Kumwenda, said the suspension would hold until the end of the 2023-2024 financial year, which came to an end yesterday.
“After careful consideration about all factors relating to the devaluation of the Kwacha on Malawians, specifically domestic customers for Escom and Escom as a business, I hereby announce that Escom will delay the implementation of tariff adjustments for the domestic sector until April 1 2024. However, tariffs for industries and commercial customers will remain the same,” Matola said.
Responding to a question during a Times Exclusive interview on Times Television on Saturday, Matola said the President will make a final decision on the issue.
- Advertisement -
“We will wait for the President to tell us what to do. He is the one who ordered the suspension and now it is not about Mera or Escom but the President, who will direct us,” Matola said.
Escom Public Relations Manager Kitty Chingota was Sunday unavailable to comment on the matter.
But Chingota confirmed to Zodiak Online that they would be advised on what to do.
“The suspension of the tariff adjustment was up to March 31 2024, unless we are advised otherwise by authorities,” Chingota said.
This means that, from any day, Escom can go ahead to effect the new tariffs.
Meanwhile, Consumers Association of Malawi Executive Director John Kapito has urged Escom to wait until the economy stabilises.
“I think that [the suspension] was a way of cushioning customers from the hard economic situation the country found itself in because of the devaluation. And the key challenge is that people are still struggling economically. So I look at the economy now and suggest that the government should maintain [the freeze] until the economy improves,” he said.
However, economic expert Greenson Nyirenda said Escom would be justified in raising electricity tariffs.
“Escom looked at the cost of producing electricity. Things have become expensive and they [Escom] are not spared and they are justified to increase the price because, for the company to operate smoothly, they have to cover their costs. But if we consider the income of people, the increase will, indeed, be unfair on consumers,” Nyirenda said.
In the Saturday interview, Matola promised continued supply of fuel.
“Everything is now going on well. We have plenty of fuel and there will be no more queues in pump stations. That is why Mera has opened up [and announced] that people can purchase fuel in jerry cans [not more than 20 litres,],” he said.
