CAMA loses electricity tariff hike case

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John-Kapito

The Lilongwe high court has ruled that the Electricity Supply Corporation of Malawi (ESCOM) can hike electricity tariffs since the cost of production has gone high following the devaluation of the kwacha.

In December, Malawi Energy Regulatory Authority (MERA) resolved th

John-Kapito2
Kapito: the ruling is retrogressive

at electricity tariffs be increased by 6.6 percent- to K53.69 (about $0.08) from K40.69 (about $0.06) per kilowatt-hour.

The increase came barely a month after the energy regulator had given Escom a 13.7 percent increase in tariffs.

Reacting to the development, the country’s consumer watchdog, Consumers Association of Malawi (CAMA) through its lawyer filed a lawsuit against MERA and ESCOM challenging their decision to hike the electricity tariffs despite ESCOM’S poor performance.

However, the court in Lilongwe has ruled that Escom can maintain the hike following the depreciation of kwacha against major international currencies.

But CAMA Executive director John Kapito has described the ruling passed on 29 March as “retrogressive” to consumers following continued blackouts in the country.