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Mera maintains electricity tariffs

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The Malawi Energy Regulatory Authority (Mera) has maintained electricity tariffs despite instability in key macro-economic fundamentals and depreciation of the kwacha.

This means electricity tariffs have been maintained at an average of K57.72 per kilowatt hour.

Mera said in a statement the decision was based on the outcome of the Automatic Tariff Adjustment Formula (ATAF) which was within the plus or minus five percent trigger limit.

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“Since May 3, 2016, economic fundamentals have remained unstable with the kwacha depreciating from K693.50 to the US dollar. On the other hand, inflation has marginally decreased to 21.2 percent,” the statement said.

Mera said applying these economic fundamentals to the ATAF resulted into a 3.80 percent upward electricity tariff adjustment but said according to the principle of ATAF, electricity tariffs are adjusted when the ATAF outcome is beyond the plus or minus five percent trigger limit.

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.

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