Tag Archives: Malawi Regulatory Authority (MERA)

Business, Malawi

Malawi fuel prices up by 41%

Jones Gadama

LILONGWE-(MaraviPost)-The Malawi Energy Regulatory Authority (MERA) has implemented a 41% fuel price hike, effective immediately.

According to a statement signed by board chairperson Lucas Kondowe, the landed costs for petrol and diesel have surpassed the 5% trigger, prompting the authority to adjust prices.

Petrol now costs K4,965 per litre, while diesel is priced at K4,945 per litre.

MERA’s decision follows a move to revert to a more realistic pricing mechanism, aiming to end artificial pricing that has affected government fuel procurement and availability in recent years.

The authority cited increased landed costs as the reason for the price adjustment.

The hike is expected to impact consumers, with potential increases in commodity prices and transportation costs.

MERA has warned fuel retailers against selling above approved prices, emphasizing compliance with regulated maximum pump prices.

The development has attracted anger from the general public considering heavy taxes President Peter Mutharika’s Democratic Progressive Party (DPP)-led government has introduced to Malawians.

Business

MCCCI proposes 40% electricity tariff hike

Lloyd M’bwana

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.

ESCOM embarks on data collection exercise to aid network digitalization

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.

Business, Malawi

How many lies will Chakwera tell Malawians on fuel, forex shortages?

Maravi Post Reporter
Matola (Energy Minister), Chakwera and motorists spending nights for fuel

LILONGWE-(MaraviPost)-Liars. Malawi Regulatory Authority (MERA) on Saturday evening, November 5, 2022 made another false hope saying the country has secured US$ 60 million to contain fuel crisis.

MERA Executive Director, Henry Kachaje told face the face that regardless of any circumstances fuel shortage will through the month of November.

Energy and Information Ministers Ibrahim Matola and Gospel Kazako respectively co-hosted face the press.

Kachaje said the country is expecting to receive 12 million liters of fuel and 13 million liters of diesel next week.

He again gave false hopes that 40 tankers of fuel are currently on the way while extra 30 tankers have been added.

Kachaje therefore appealed to Malawians’ patient as government is trying it’s best to address the fuel crisis.

He however disclosed that MERA will only allow essential services to be allowed to get fuel in gallons with special letters to avoid motorcycles failing to get fuel regardless of staying on long queues due to those that are using gallons.

Kachaje again gave an excuse of fuel shortage arguing that last year the country used US$300million to procure fuel for the whole month saying kwacha’s power against US dollar tumbled that needed Malawi to sources additional US$600million which the country is failing to meet fixing crisis.

This comes as President Lazarus Chakwera without shame and remorse continues to travel abroad on petty trips that use huge forex.

Chakwera is unable to get a formula in fixing Malawi’s ailing economy characterized by high cost of living, drug, forex, fuel shortages over two years in power.

Malawi

Fake solar energy equipment hits Mzuzu

Maravi Post Reporter

MZUZU-(MaraviPost)-A snap survey by the Mzuzu University in Malawi’s northern region has discovered that there is proliferation of substandard energy equipment like solar panels being imported into the country.

Energy expert at the university Dr. Collen Zalengera said in an interview that some of the equipment put consumers’ health at risk.

“The visual inspection exercise showed that the energy equipment do not comply with Malawi Bureau Standards (MBS)’s requirements. This is bad to consumers,” said Dr. Zalengera.

On Thursday, the university presented the concern to the Malawi Regulatory Authority (MERA) at a forum which the regulator organized to interact with small scale energy players.

Director of electricity and renewable energy at MERA Eng Welton Saiwa said the regulator has moved in swiftly to sensitize energy operators to trade carefully on the fake energy equipment flooding the market.

Said Saiwa: “It is important that we have heard about this… we will act swiftly as a regulator since we are also planning to establish a testing center in the north.”

He disclosed MERA will also continue working with the Malawi Revenue Authority so that imported goods met MBS requirements.

Persistent power blackouts being experienced across Malawi have forced citizens to opt for other sources of energy.

One source of energy that is increasingly being preferred by the majority is solar power as it proven to be affordable and effective.