MERA blocks Escom from hiking electricity tariffs

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… says Escom already makes enough money to improve services

The Malawi Energy Regulatory Authority (MERA) has blocked Electricity Supply Corporation of Malawi (Escom) from implementing a hike of electricity tariffs arguing that the supplier is generating enough funds for its operations though its services are deteriorating.

The development comes at a time when the electricity supplier wanted to be allowed to hike tariffs by 8.9 percent.

ESCOM.

Escom gets blocked from raising electricity tariffs.

In a statement signed by MERA board chairperson Joseph Bvumbwe, the energy regulator noted that in the financial year ending June 2016, Escom made enough money to support its operations even though the company faced challenges in providing reliable power to Malawians.

“In view of the observations made, MERA resolved that the implementation of Escom’s 8.9 percent Tranche Base Tariff increase due in 2016/17 financial year be deferred pending further investigation, analysis, and validation of Escom’s performance,” reads part of the statement made available to Malawi24.

According to MERA, further analysis of the supplier’s technical performance is key in demonstrating the extent to which Escom has translated its financial gains into tangible improvements of its system in order to ensure continuity and reliability of power supply to its customers.

MERA granted Escom the first tranche of electricity tariff hike of 13.54 percent that was effected on April 4 in the year 2014.

The year that followed, MERA also granted a hike of 13.73 percent in November out of the required 18.31 percent after getting satisfied with Escom’s performance.

However, the Consumer Association of Malawi (CAMA) has been faulting the hikes arguing that they do not reflect the quality of service Escom provides citing the persistent power shortage in the country.

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100 Comments

  1. lkkkkkk why hike the electricity tarrifs wen we only hv elecricity 4 ryk few hrs a day,magetsi kuzima 4 am kumayaka 11 pm usiku hahaha koma nde tisupa gule osavina ndithu.seriously do u with ur inefficiency pple will agree to that.so stupid kkkkk mukadangonena kuti dzingwe mumati zamagetsi zija munaika kuti tidziyanikapo dzovala coz current isnt flowing zamkutu zokhaZokha basi .mukamakambilana ku board yanuyo mudziyamba mwaganiza a kaligondo inu

  2. dont forget we are still Manyansa nothing can change cause kuphikako kuli anthu a school zakale kale moti asiyile ana ochangamuka anthamangise ngini, FLAMES WAKE UP PLEASE kunjaku kwacha

  3. magetsi akayaka tikumachita kudabwa kut eee mwina ku #BOSCOM kuli vuto kapena coz w are now used to living in black outs …..be ashamed of ur self…w@ever u call ur self…..

  4. It show s that black malawians have fail to manage Escom is the time now we hire white expert im challenging you with the same resources we can have power all day all time

  5. Their revenue have tremendously gone down due to black outs. Now they want to rob us for no reason at all. May be I have to install solar system.

  6. Their revenue have tremendously gone down due to black outs. Now they want to rob us for no reason at all. May be I have to install solar system.

  7. MERA nd ESCOM zawo mzimodz asatipusitse, akwezad magets, koma mkum@ magets ake @ mukwezewo? Kuwapha amalaw, DPP imeneyo, boma ili silimaganizira zaanthu wamba, kwezan mulemere bwno

  8. Ndipo Escom ilibe manyazi mmene zinthu ziririmu mpaka kumaganiza zoonjezera mitengo zoona? Koma boma ili silidzanva olo titalisalira kudya, kuyenda pa mseu, kulipempherera silingatheke

  9. If they dont have enough funds for their operations its better to privatise their entity rather than hiking their tarrifs we’re exhausted with blackouts

  10. Useless Escom,poor management,just imagin Escom is hiring vehicles at K20,000 per day,how much much r dey wasting per month 2 pay 4 dose cars dey r hiring? And now dey want 2 say dat dey r not making profit dey think we r stupid?

  11. Malawi, you just want to continuously panic the poor to death. Where on earth shall poor Malawians live safely without modern time hypocrisy and exploitation????

  12. Which theory in economics are they adopting, instead of charcoal sellers to consider raising prices due to high demand awa magetsi yawo sitiyawona angoti fwifwifwi chani?

  13. This is MERA telling the public that at some later date a escom akweza magetsi…….we know u MERA….we ain’t kids…..

    Escom employees?!?!!…. Kukacha mmamawa uja mkumati mupita kutchito….what exactly do u mean…….??????…..u must be ashamed of yourself…

    Olo titat akugulani(bribery/ corrupt)… Nde mpaka nonse…opanda ndimmodzi yemwe …patriotic enough to say enough is enough …and fight for change??????

    Work-up fellaz……

  14. Most of times it seems like they are not collecting enough money from consumers hence they opt for hiking tariffs forgeting that huge sum of monies end up in their pockets….. Corruption is really a problem more expecially govt’s organisation

  15. Management of escom is full of criminals and power hungry people true leaders would have reasigned by now for the mess they have created, to an insult they are getting full salaries for a quarter service being provided.. shame shame…

  16. For now. But I can promise you that the tariffs will increase shortly. Probably during rainy season when the blackouts eases. Escom always gets what it wants. So sad