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ESCOM To ‘Appeal’ 32 Percent Tariff Hike

The country’s sole power supplier, the Electricity Supply Corporation of Malawi (ESCOM), has said it will re-engage Malawi Energy Regulatory Authority (MERA) to reconsider the recommended 31.8 percent electricity base tariff hike approval. The company said that the hike is not enough to enable it meet its challenges in power supplying. It further went ahead to say that it will borrow K30 Billion from banks to settle its debt. Speaking to the press yesterday in Blantyre its Chief Executive Officer, Alexon Chiwaya, said that the new tariff may help ESCOM improve its service delivery, but it will not address the cost of buying electricity as it remains high, a sentiment that was agreed to by the company’s Commercial and Customer Service Manager, Wiseman Kabwazi. “The increase will assist us in moving towards a cost reflective tariff but it would not be as cost reflective. Our current position is to go back to MERA and seek consideration. It is not an appeal but we are rather going to request for reconsideration,” he said.

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