Malawi Energy Regulatory Authority (MERA) has dismissed fears of an increase in electricity tariffs following the recent upward adjustment of fuel pump prices.
MERA Chief Executive Officer Dr Collins Magalasi told YFM on Wednesday that electricity tariffs will be maintained despite the current usage of diesel generators to contain power outages in the country.
“The price of electricity coming from the use of diesel generator was sorted out already so we do not expect any increase in the price of electricity,” Dr Magalasi said.
“Yes we determine the price of electricity by looking at the inputs so in this case we are using the Aggreko generators which are using diesel but the increase in the price of diesel is so small – less than 2% that it does not qualify under automatic price mechanism,” he added.
In the twist of invests, the Electricity Supply Corporation of Malawi (ESCOM) also presented a proposal to MERA requesting for approval of 2018 – 2022 electricity base tariffs.
The new base tariffs once approved will see ESCOM raising the tariffs to above 60 % meaning that a unit of electricity will be purchased at around K 122.
Director of Economic Regulation and Pricing of Electricity and Fuel at MERA, Eunice Potani, the proposed hike in tariffs aims at cushioning the production constraints that ESCOM is meeting during its operations.