By Benadetta Chiwanda Mia:
Electricity Supply Corporation of Malawi (Escom) has implemented a 16 percent tariff increase across all customer categories, pushing domestic single-phase rates to K105 per kilowatt from K93.
Three-phase tariffs have also risen from K133 to K150 per kilowatt.
The adjustment, effective February 1, comes as Escom grapples with a K50 billion financial deficit, largely due to increased power procurement costs.
In an interview, Escom Chief Executive Officer Kamkwamba Kumwenda said the hike was part of a 50.8 percent four-year tariff adjustment plan approved by the Malawi Energy Regulatory Authority (Mera) in 2023.
He revealed that independent power producers (IPPs), while contributing only 9 percent to energy requirements, consumed 34 percent of Escom’s revenue.
“After the 44 percent devaluation, government did not increase tariffs for domestic customers. We are paying more to producers than what we are charging customers, making us financially unsustainable, ” Kumwenda said.
However, Parliamentary Committee on Energy and Natural Resources Chairperson Werani Chilenga criticized the timing of the increase.
“It should have been implemented later when people have been relieved of current economic challenges. This is like adding salt to an existing wound,” he said.
Under the Mera-approved plan, tariffs will increase by 16 percent this year, followed by 12 percent next year and 9 percent in the final year.
