The Consumers Association of Malawi (CAMA) has rejected the Malawi government’s move to reestablish Power Market Limited (PML) and states that it will increase electricity tariffs and harm consumers.
Speaking to the media, CAMA Executive Director John Kapito said PML was previously discontinued due to its adverse impact on consumer welfare.
“The re-establishment of Power Market Limited will have serious negative economic impacts on consumers as its survival is dependent on raising fuel tarrif which are already high and Malawians are struggling to pay,” Kapito said.
He said that a 99 percent tariff hike proposed in 2023 included 30 percent attributed to administrative costs for PML, an institution that has not demonstrated any added value to consumers.
CAMA says only 11 to 15 percent of Malawians have access to electricity, with high costs and blackouts among key barriers.
The association argues PML’s functions should remain within ESCOM until the power market develops, especially with growth of independent power producers.
“The reason why PML was disbanded it was as a result of its high cost on consumers, that forced government to transfer much of its activities into ESCOM,” he said.
He urged government to instead focus on strengthening ESCOM to improve operational efficiency while protecting consumers from unnecessary electricity tariff increases.
