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Mera maintain Escom tariff and fuel prices

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Malawi Energy Regulatory Authority (Mera) has maintained pump prices of petrol at K824.70 per litre, diesel price at K815.80 per litre and paraffin at K648.70 per litre as well as the Escom tariff rate at K57.72 per kilowatt hour.

In its statement, signed by the board’s chairperson, Bishop Joseph Bvumbwe, Mera said the average Free on Board (FOB) prices of petrol, paraffin and diesel declined by 0.99 percent, 2.74 percent and 0.95 percent respectively in the month of July.

“The FOB prices for petrol, paraffin and diesel decreased in July 2017 when compared to the averages obtained in the month of October, 2016 used in determining the current pump price,” reads the statement in part.

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The regulatory body said it assessed the combined effect of the movement of the FOB prices and exchange rate to the US Dollar as well as changes in local factors that determine the maximum pump prices and noted that the landed cost of Petrol, Diesel and Paraffin increased by 1.91 percent, 5.84 percent and 4.82 percent, respectively.

On electricity tariff, Mera said they considered a review of the tariff under the automatic Tariff Adjustment Formula (ATAF).

The statement said the decrease in inflation and kwacha depreciation remained the basis for consideration of tariff adjustments for March 2017.

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Inflation decreased to 11.3 percent as at June 2017, while the kwacha depreciated to K733 against the dollar as at july 31, 2017.

“Applying these economic fundamentals to Ataf resulted into a -5.10 percent potential electricity tariff adjustment.

“The Mera board however, considered the backlog of base tariff increase that has not yet been implemented and resolved that the electricity tariff be maintained at the current average K57.72/kWh to enable Escom partly bridge the revenue gap created by the delays in tariff implementation,” reads the statement.

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