LILONGWE-(MaraviPost)-Malawi Confederation of Chambers of Commerce and Industry (MCCCI) is proposing a 40% electricity tariff hike for 2023-2027 against a suggested 69.9 percent application base.

The proposal comes after Electricity Supply Corporation of Malawi (ESCOM) submitted a business plan to Malawi Energy Regulatory (MERA) covering a period of four years from 2023 to 2027 which includes increasing tariff by 69.9 percent.

This is in line with the 2017 Tariff Methodology, that once every four years, power sector licensees should prepare and submit their business plans to Mera

MCCCI however observes that the proposed 69.9% tariff base increase is unjustified considering failed projects in the previous tariff hike.

MCCCI Chief Executive Director Chancellor p told the public hearing on Wednesday, July 12, 2023, in the capital Lilongwe that the Electricity Supply Corporation of Malawi (ESCOM) be given a 40% tariff hike in the proposed base.

Kaferapanjira observes further that proposed 69.9% tarrif hike is heavy for local consumers.

“Considering the past two electricity tariff base hikes, ESCOM failed to meet deliverables. But we can not deny it strengthening financial base amid various economic shocks.

“We give ESCOM second chance with 40% tarrif hike with close eye on performance indicators,” said Kaferapanjira.

Echoing on the same, Economics Association of Malawi (ECAMA) Secretary General Andrew Kumbatira said cost-effective must be considered for locals.

MERA board chairperson Reckford Kampanje said before any tariff adjustment is approved Malawians need to have their input.

“Stakeholders’ participation is important so that going forward we can have a common understanding,” he said.

The public hearing attracted participants from Members of Parliament (MP), councilors, Civil Society Organisation representatives, government officials, Traditional leaders, media, members of the general public and among others.

ESCOM failed to meet its targets in 2018-2022 electricity base tarrif application of 37% hike.