Electricity tariff upward revision not automatic -ministry

Ministry of energy has rebuffed claims on automatic electricity tariff increase following the elapse of suspension duration that the government effected on the tariffs last year.

On December 1, 2023, government suspended upward revision of electricity tariffs until April 1, 2024 using the Automatic Tariff Formula (ATAF) on domestic customers but remain on industrial users despite an approved 40.9% adjustment from K123.26 kilowatt-hour to K173.70 kilowatt-hour the Malawi Energy Regulatory Authority (MERA).

In the latest interview with Capital FM, ministry of energy spokesperson Austin Theu explained that it is not automatic to have the tariffs hiked upon the end of the given duration citing that government is yet to make an official determination on the matter.

Theu said; “The suspension on increase was meant to be effective up until today 1 April 2024, but it is not an automatic issue that the tariffs have increased today.

“As a ministry, we cannot confirm that the tariffs have increased because the suspension period is over because we are waiting for official communication which will be made available to in due course.”

In August 2023, MERA approved and granted a 50.8% base tariff increase to ESCOM for the period of 2023 to 2027, with the first-year tranche of 18% which was effected on 1 September 2023, moving the average tariff from K104.46/kWh to K123.26/kWh.

According to MERA, the second electricity tariff increase in three months was necessary because of the adjustment in exchange rate by the Reserve Bank of Malawi.