Despite fundamentals that guide pricing of electricity qualifying the product for a potential price increase, the Malawi Energy Regulatory Authority (Mera) has decided to cushion consumers through the Price Stabilisation Fund.
According to Mera, applying economic fundamentals to the Automatic Tariff Adjustment Formula (Ataf) resulted into a potential price hike of -8.27 percent.
The regulator says in arriving at its decision to maintain prices, it considered the backlog on the implementation of the third and fourth tranches of the second base tariff and Electricity Supply Corporation of Malawi’s (Escom) revenue loss emanating from the delay in implementing the tranches.
“The board, therefore, resolved to maintain electricity tariffs as implemented in February,” the statement reads.
According to the current tariff schedule available on the Escom website, the unit charge for electricity per Kilowatt hour (KWh) to customers under the Domestic Single Phase Supply is K46.30, K80.05 for General Pre-paid Single Phase Supply customers and K87.40 for customers under the Prepaid Three Phase Supply.
For the Maximum Demand- Low Voltage Three Phase Supply for industrial users on peak unit charge per KWh will remain at K94.95 while the price tag for off peak has been maintained at K26.
While the unit charge for Essential Service Prepaid Three Phase Supply High Current Metering has been maintained at K103.70.
This should be good news for consumers and industry coming at a time when the country is battling its worst electricity crisis in history.
The situation is being blamed on lowering water levels in the Shire River, where the country taps power for hydro-electric power generation.