9 October 2017

Malawi Electricity Tariffs Going Up

Photo: allAfrica
(File photo).

Malawians should brace to start dipping deeper in their pockets to pay for electricity as Electricity Generation Company (Egenco) seeks a tariff hike to help financing to hire 78 megawatts diesel generators from Electricity Supply Corporation of Malawi (Escom) for purposes if cushioning the effects of power outages.

Malawi Energey Regulatory Energy (Mera) is expected to approve the increase in tariffs which is expected to be to the tune of 25 percent.

Egenco spokesman Moses Gwaza said they will make "evaluation of the financial proposal" before suggesting the percentage of tarrif hike.

In Malawi, electricity tariffs are expected to be reviewed every four years and since 2008, there have been two electricity tariff reviews, the first being from 2009 to 2013 and the second from 2014 to 2017.

The development comes after reports that Escom messupe up procurement of new heavy-duty generators that were expected to add about 80 megawatts to the national grid when he pushed for awarding of a $74 million contract to a South African firm Aggreko.

The heavy-duty generators were scheduled to start running from this month but no single generator has been procured as ODPP informed government to cancel the procurement, observing that the process were "wrongly made".

Escom's poor handling of the process has made companies to be forced to cut down on production, lives have been lost in hospitals while homes have been affected as well .

Malawi

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