Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has quashed State-run Electricity Supply Corporation of Malawi (Escom)’s proposal to increase electricity tariffs by 69.7 percent in the next four years.
This came out during the second public hearing on the proposal organised by the Malawi Energy Regulatory Authority (Mera) in Lilongwe Wednesday.
Escom recently reviewed its electricity tariff adjustments proposal from 99 percent to 69 percent.
MCCCI Chief Executive Officer Chancellor Kaferapanjira said there is no justification for Escom to ask for such an increase.
He said, in 2018, the utility company asked for another adjustment which it justified by saying it was meant for implementation of several projects which did not materialise.
“As an institution we say no to this tariff increment. If Mera is to accept this application, the tariff should be reduced to 40 percent, meaning a 10 percent increase every year for the next four years,” Kaferapanjira said.
Economics Association of Malawi Secretary General Andrew Kumbatira said for the country to realise economic growth, the energy sector has to be vibrant.
He said all countries that are doing well economically have uninterrupted electricity connections.
“As Ecama, we accept this tariff increment on the basis that our economy is in shambles but, however, we need to be realistic with the percentage at which the tariff will be adjusted with,” Kumbatira said.
Consumers Association of Malawi Executive Director John Kapito said it was unfortunate that Escom was asking for such an increase.
He said it is high time Escom put its house in order for people to trust its functionality.
“This is not what we were expecting from Escom but we believe Mera has a final say and we will make sure they do the right thing on the tariff increment application,” Kapito said.
Mera Chief Executive Officer Henry Kachaje said it is Mera’s mandate to solicit views before accepting or denying tariff increase applications.
He said these consultations will be done in all the three regions.
“We are taking into account what people are proposing and, by the end of the day, we will have to sit down and consolidate all the views and come up with a decision which will also be made known to the public,” Kachaje said.
A review of the just ended base tariff (2018 to 2022) has shown that Escom failed in almost all its agreed Key Performance Indicators.
Source: The Daily Times_July 13, 2023-By Wezzie Gausi