ESCOM wants electricity tariff increased by 69.7%

Escom Malawi

Electricity Supply Corporation of Malawi (ESCOM) has submitted an application in which it is asking the Malawi Energy Regulatory Authority (MERA) to approve a 69.7% electricity tariff increase.

According to a statement from MERA, the application for the tariff increase is for the period between 2023 to 2027 and is a successor base tariff to the one that was implemented from 2018 to 2022.

“The average end user tariff for the base tariff period has increased to an average of MK177.26/kWh from the current average of MK104.46/kWh. This represents an increase of 69.7%,” reads part of the statement.

MERA says the increase is mainly due to power purchase costs which include cost to purchase power from Mozambique-Malawi Interconnector and Serengeti Solar Plant; inclusion of the wheeling charges for the Interconnector, introduction of the Stabilization Fund and efforts to improve service delivery to customers.

MERA has also mentioned the devaluation of the kwacha over the years including the 25 percent devaluation in May 2022 by the Reserve Bank of Malawi as one of the factors that have contributed to the significant increase in total costs.

The new application by ESCOM is a significant reduction from the 99.9% that ESCOM and the Power Marketing Limited (PML) jointly asked before PML was dissolved.

Meanwhile, MERA has asked stakeholders and to submit their feedback on the proposed tariff.

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