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Mera reviews power tariff hike proposal

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John Kapito

Malawi Energy Regulatory Authority (Mera) is reviewing feedback from consumers and stakeholders on the 99 percent power tariff hike proposal.

In August this year, Electricity Supply Corporation of Malawi (Escom) and Power Market Limited (PML) proposed the electricity tariffs increase.

The 99 percent tariff adjustment request is for the period 2022 to 2026

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Mera spokesperson Fitina Khonje said the authority is still reviewing feedback on the suggestion and could not commit on when the next phase of the process will begin.

“We want all processes to be followed in this development. Therefore, we are still scrutinising the responses from consumers and other stakeholders and the public will be alerted to the next phase of the process,” she said.

The proposal faced a backlash, with some sections of the society describing it as unreasonable.

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Consumers Association of Malawi Executive Director John Kapito said Escom was not justified to increase its electricity tariffs until it improves its service delivery.

“From the last time Escom adjusted tariffs and set out key performance indicators, it has not been able to show any progress. Therefore, it is unfortunate to have another tariff hike,” he said.

But Escom justified the proposal, saying power producers have increased their tariffs, which is making the power utility body incur more losses.

The laws governing the energy sector allow PML and Escom to apply for a rise in electricity tariffs every four years.

Under the 2022-26 Electricity Base Tariff Application submission, the two firms want electricity tariffs hiked by 80.75 percent from the current K104 per kWh to K187.98 in 2022-23, which is the first year of implementation.

In the year 2023-24 the State utility firms proposed a K184.18 per kWh hike whereas in the 2024-25 and 2025-26 year, the firms want a K210.59 per kWh and K249.15 per kWh increase.

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