20 September 2016 Last updated at: 7:38 AM
Malawi electricity tariffs to go up
Amid persistent blackouts in the country, the Electricity Supply Corporation of Malawi (ESCOM) has unveiled plans to hike electricity tariffs following the coming of Independent Power Producers (IPPs).
The development come at a time when Malawi government has signed over 36 memorandum of understandings (MoUs) with IPPs.
According to the ministry of natural resources, energy and mining, five of the private producers have signed term sheets, a precursor to signing power purchase agreements (PPAs).
Reacting on the matter, ESCOM chief executive officer John Kandulu said Malawians are to be paying more for electricity due to high charges from the IPPs in the country.
“Currently ESCOM charges 8 cents per kilowatt and that’s less however when IPPs are to come we are to spend 12 cents to 19 cents per kilowatt and that’s too bad,” said Kandulu.
Consumers Association of Malawi (Cama) executive director John Kapito decried the level of transparency involved in negotiating the deals, saying Malawi may end up signing deals that would cost the nation in the near future.
However, Malawi Energy Regulatory Authority (Mera) has disclosed that the energy regulator has developed monitoring mechanisms to ensure that pricing of IPPs do not stifle the consumer.