Rédaction Africa Links 24 with Times News
Published on 2024-04-01 07:06:23
President Lazarus Chakwera holds the ultimate decision-making power on whether the Electricity Supply Corporation of Malawi (Escom) should move forward with a tariff increase, as stated by Energy Minister Ibrahim Matola. The government had previously halted a 40.92 percent electricity tariff hike that was implemented by the Malawi Energy Regulatory Authority (Mera) in November 2023, following a 44 percent devaluation of the Kwacha. Officials cited complaints from Malawians, who were feeling the financial strain due to increased commodity prices resulting from the weakened currency.
Matola, alongside Escom Chief Executive Officer Kamkwamba Kumwenda, announced that the suspension of the tariff hike would extend until the conclusion of the 2023-2024 financial year. He emphasized that the delay in tariff adjustments for domestic customers would continue until April 1, 2024, while tariffs for industries and commercial customers would remain unchanged. Matola clarified during an interview on Times Television that the final decision on the matter lies with President Chakwera, who had initially ordered the suspension.
Escom Public Relations Manager Kitty Chingota acknowledged that they would await guidance from the relevant authorities regarding the next steps regarding the tariff adjustments. The suspension was set to expire on March 31, 2024, unless directed otherwise by the government. This indicates that Escom could proceed with implementing the new tariffs at any point following the expiration of the suspension.
In response to the situation, Consumers Association of Malawi Executive Director John Kapito advised Escom to hold off on any tariff adjustments until the economy stabilizes. He highlighted the ongoing economic challenges faced by people in the country and suggested maintaining the freeze on tariffs until economic conditions improve. On the other hand, economic expert Greenson Nyirenda argued that Escom would be justified in raising electricity tariffs due to the increased costs of producing electricity. However, he acknowledged that such an increase could place financial strain on consumers given the current economic circumstances.
During the interview, Matola reassured the public of a continuous fuel supply, indicating that fuel shortages and long queues at pump stations were no longer a concern. He mentioned that Mera had implemented measures allowing individuals to purchase limited quantities of fuel in jerry cans, not exceeding 20 liters. Matola’s statements aimed to alleviate concerns regarding fuel availability and accessibility in the country.
In conclusion, the decision on whether Escom should proceed with a tariff increase rests with President Chakwera, who will provide guidance on the matter. The government’s decision to suspend the tariff hike reflects a consideration of the economic challenges faced by Malawians and the need to balance the financial impact on consumers and the operational costs of Escom. It is crucial to monitor the economic conditions and make informed decisions to ensure sustainable and affordable electricity supply for all consumers in Malawi.
Read the original article on The Times
