MERA reverses electricity tariff adjustment to cushion domestic consumers

Malawi Energy Regulatory Authority (MERA) has reversed the 40.92 percent upward adjustment it recently made on electricity tariff in response to the devaluation of the Malawi kwacha.

MERA Board Chairperson Reckford Kampanje, in a statement issued on Friday, said the reversal is in compliance with the directive of President Dr. Lazarus McCarthy Chakwera.

Kampanje said the reversal is effective December 1, 2023.

“MERA had applied the Automatic Tariff (ATAF) to assess the impact of changes in economic fundamentals of the exchange rate and Consumer Price Index on Electricity Supply Corporation of Malawi (ESCOM) and other electricity licensees’ business. This resulted in a 40.92 percent tariff increase, which moved the overall average electricity tariff from K123.26/kWh to K173.70/kWh effected in November 2023. President Chakwera has directed that Malawians should be cushioned against the impact of the recent devaluation of the kwacha against the United States dollar,” reads part of the statement.

Kampanje said following the reversal, the average electricity tariff for domestic consumers only has been reversed to K92/kWh as set in September 2023.

“In addition, the lifeline tariff aimed at providing affordable electricity supply to low-income earners will continue to be applied to the first 50 units purchased in a month,” concluded the statement.

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