The Malawi Energy Regulatory Authority (Mera) has maintained electricity and fuel tariffs on the basis of improvements in key macro-economic fundamentals including inflation and the marginal appreciation of the kwacha.
This means electricity tariffs have been maintained at an average of K57.72 per kilowatt hour while pump prices for fuel, diesel and paraffin remain at K743.30, K722.80, K580.40, respectively.
But going by the ATAF plus or minus five percent trigger limit principal that Mera uses to determine whether or not to revise both electricity and fuel prices, electricity tariffs should have been revised downwards while fuel prices should have gone up.
But Mera said it resolved to maintain electricity tariffs to recover the revenue lost due to the delayed implementation of the tariff incremement while cushioning the increased landed costs of the three petroleum products through the Price Stabilisation Fund.
“The Mera board considered that it had pended and delayed the implementation of the approved electricity tariff increase in February 2016 to cushion consumers against the effects of high tariff increases.
Mera last approved an increase in electricity tariffs in February to 7.5 percent from K53.69 to K57.72 per kilowatt-hour. The development came barely over a month after the regulator also approved another 13.7 percent increase in tariffs. Fuel prices were last increased in March, 2016.