Article By: Lloyd M’bwana
Consumer Association of Malawi (CAMA) is challenging the 13.73 percent electricity tariff hike effected on January 1, 2016 through court which was approved by Malawi Regulatory Authority (Mera) and Electricity Supply Corporation of Malawi (Escom) implemented.
In December 22, 2015, Mera issued a statement that electricity tariffs would be increased come January 1, from an average of MK40.69 per/kilowatts hour to MK53.69 per kilowatts hour (US$0.8 per kilo watts hour which Mera’s Board Chairperson Dingiswayo Jere signed.
According to Jere, the board’s role stipulated in section 9 of the Energy Regulation Act revolved to increase the tariffs in keeping with promoting the interests of consumers in respect to energy prices and charges with quality of energy suppliers.
“Based on Escom’s performance in the 2014/2015 fiscal year, it has granted the utility a 13.73 percent tariff increase as the second tranche of the base tariff with effect from November 2, 2015.
Therefore, the average increase tariff from MK35.69 per kilowatt hour (kWh) to MK40.69/kWh looking into account the impact of movements in the micro-economic fundamentals of the exchange rates and inflation up to June 30, 2015.
“Therefore, Mera board agreed to grant Escom a 24 percent ATAF-based tariff increase which moved the tariff to MK50.33 per kWh though the board resolved that implementation increase be delayed for few months in order to cushion consumers from its impact”, observed Mera’s Board Chairperson Jere.
But according to Summon issued by Chief Justice Andrew Nyirenda, Cama is seeking a court injunction stopping the tariff increase until the decision was reviewed and Mera and Escom have been given 14 days to respond to Cama’s lawsuit or suffer default judgment.
“We are seeking an injunction before any tariffs increase in order for the two bodies; Mera and Escom to explain to Malawians the reasons behind the current tariff hike that do not add up to ordinary Malawians. There is need for them to engage consumers on justification
for this increase considering their failure to meet its own Key Performance Indicators (KIP) as to why we are being rewarded for that botch”, argued John Kapito, Cama’s Executive Director.
Meanwhile, Mlenga Mvula, Judiciary Spokesperson is quoted in the local press confirming Cama’s application saying the High Court has since settled for interparty hearing which was brought before Justice Esmie Chombo in Lilongwe on Wednesday, January 6.
“Indeed Cama had applied for court injunction against Mera and Escom implementation the tariff hike last week. On Wednesday, January 6, when the matter was brought before Justice Chombo of High Court in Lilongwe for hearing, she ordered for interparty hearings on the
matter.
“However, we cannot say as to when the matter will be resolved since there is need for lawyers from both parties to meet over the issue and draft the way forward but if they do it quicker than later, the matter will be also resolved faster as well”, elaborate Mvula.