MERA approves 50.8% electricity tariff hike

By Chisomo Phiri

The Malawi Energy Regulatory Authority (MERA) on Friday announced that it has approved a four-year electricity tariff hike of 50.8 percent.

Addressing the media in Lilongwe, MERA Chief Executive Officer (CEO) Henry Kachaje said the MERA board recommended the tariff hike at a meeting held on August 29, 2023.

He said this is after reviewing a Power Market Limited proposal of a 99.9 percent increment and later a base tariff application of 69.7 percent by the Electricity Supply Corporation of Malawi (ESCOM).

Henry Kachaje

“Following review of the base tariff application by escom in April, Mera met Escom and the Electricity Generation Company (Egenco), and conducted public hearings in Blantyre, Lilongwe and Mzuzu.

“Escom justified its application and base tariff application,” said Kachaje.

He indicated that in the 2023/2024 financial year, MERA has approved an 18 percent increment and 16 percent adjustment in the 2024/2025 financial year.

Kachaje said the lectricity base tariffs will be increased by 12 percent in the 2025/2026 financial year and 9 percent in the 2026/2027 financial year.

The electricity tariff is defined as the rate at which the electrical energy is sold to a consumer.

However, the tariff should include the total cost of producing and supplying electrical energy plus the profit to the power company.

In practice, the tariff cannot be the same for all types of consumers because the cost of production of electrical energy depends upon the magnitude of electrical energy consumed by the user and his load conditions