MERA's Kachaje justifies Escom tariff hike proposal

Malawi: MERA Chief Executive Officer Henry Kachaje told the Joint Parliamentary Committee on Natural Resources and Climate Change, Legal Affairs, Public Accounts (PAC), and Trade and Industry that there is nothing wrong with ESCOM's tariff increase proposal because it is a legal process that occurs every four years.

According to Kachaje, electricity tariffs are regulated, which is why licensees or providers in the energy sector cannot simply raise their tariffs without first obtaining approval from the regulator.

"The law allows us to review their operations every four years, and then we review their requests in terms of performance and projects that they want to take," he said.

"The process allows them to provide their revenue requirements and proposed tariff adjustments once every four years. Following that, we review them and engage the public. That is when we decide whether a tariff increase can be accepted or not. What is the margin of acceptance if it is accepted? As a result, an economic process must be initiated.”

Werani Chilenga, the chairperson of the Natural Resources and Climate Change committee, stated that it is extremely unfair that Malawians should be hearing that MERA is holding public hearings just to raise electricity tariffs at this time.

"Our president has enacted austerity measures to ensure that our economy, at the very least, recovers. Making Malawians suffer even more is therefore extremely unjust. Furthermore, we are experiencing blackouts on a daily basis. What kind of electricity are we paying for, and are we paying for blackouts? Their process can wait, but we need solutions now, "Chilenga explained.

Simplex Chithyola Banda, the co-chair of the committee, stated in his remarks that it would be better if they waited for things to improve in this country.

"It would be preferable if they could wait because the country is currently experiencing economic difficulties. As a result, raising the electricity tariff now will only burden Malawians,” he stated.