The Electricity Supply Corporation of Malawi (ESCOM) has proposed that electricity tariff should be hiked from the current K104 per kilowatt hour (kwh) to K207 per kwh.
The electricity supplier has submitted the proposal to Malawi Energy Regulatory Authority (MERA) for approval.
The hike is for the four year period starting from October 2022 to October 2026.
According to the proposal submitted by ESCOM and Power Marketing Limited, the tariff would be K187.98 per kwh in the first year 2022-2023.
The power companies want the tariff increased in order to recover cost of service, encourage efficiency in the delivery of service to customers and improve financial sustainability.
They expect to make K7.86 trillion over the next four years which will help cover total cost of around K892 billion.
During the period between 2018 and 2022, ESCOM made a loss of K112 billion due to delayed or unfulfilled tariff adjustments in line with the approved tariff base, loss of power and unimplemented power projects, according to the proposal.
ESCOM Chief executive officer Kamkwamba Kumwenda said last week that electricity tariffs should be hiked or the company would cease to exist.
MERA is reviewing the proposal tariff increase and the authority expected to make a decision after consultations.
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