Cama takes Mera, Escom to court over tariff hikes

The country’s consumer watchdog, Consumers Association of Malawi (Cama) has taken to court Malawi Energy Regulatory Authority (Mera) and Electricity Supply Corporation of Malawi (Escom) over recent electricity tariffs hike.

Jere: Mera announced electricity tarrif hike

Jere: Mera announced electricity tarrif hike

Kapito: Against the proposed hike in electricity tariff

Kapito: Against the proposed hike in electricity tariff

Mera Board in December resolved that electricity tariffs be increased by 6.6 percent- to K53.69 (about $0.08) from K40.69 (about $0.06) per kilowatt-hour.

The increase came barely a month after the energy regulator gave Escom a 13.7 percent increase in tariffs.

But on 31st December, 2015 Cama through its lawyers filed a lawsuit against the two institutions, challenging their decision to hike the electricity tariffs despite Escom’s poor performance.

According to the Summons issued by Chief Justice Andrew Nyirenda, Escom and Mera have been given 14 days to respond to Cama’s lawsuit or suffer default judgment.

Cama’s Executive Director, John Kapito told Nyasa Times they are seeking a court injuction stopping the tariff increase until the decision is reviewed.

”We are seeking an injunction before any tariffs increase in order for the two bodies (Mera and Escom) to explain to Malawians the reasons behind the current tariff increases that do not make sense to the ordinary Malawian,” Kapito said.

Kapito argued that the tariffs increase was inconsiderate to the consumers especially at a time when the country is unable to get any power supply from Escom due to continued blackouts.

”There is need for Mera and Escom to engage consumers on the justification for this tariff and we are also aware that Escom has consistently failed to meet its own Key Performance Indicators (KIPs)and why are they being rewarded for that failure,” further argued Kapito.

The lawsuit will surely please many consumers who are being overburdened by the sharp increase in the cost of living as the country’s economy is on downturn.

In December, Mera Board Chairperson Dingiswayo Jere defended the tariff increase, saying Mera approved the hike after considering the impact of inflation rate and exchange rate movement.

”The tariff which was beyond the statutory plus or minus five percent threshold for revising tariffs and therefore the electricity tariff qualified for an upward adjustment,” said Jere.

But Kapito queried Mera’s approval for a tariff hike, saying Escom failed in most of the KIPs necessitating further power hike.

Escom generates 351 megawatts of electricity which does not meet the country’s demand.

In Malawi, electricity tariffs are reviewed in every four years and since 2008 when Mera Board was elected, there have been two electricity tariff reviews, the first being from 2009 to 2013 and the second of 37.28 percent from 2014 to 2017.

 

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55 thoughts on “Cama takes Mera, Escom to court over tariff hikes”

  1. wayaman says:

    well done bwana kapito how i wish we supported you….most times you speak and ACT FOR THE VOICELESS

  2. mbani says:

    nothing will work wages of poor voting and dormant malawians

  3. Concerned citizen says:

    Ngati a Peter ati adzalephere chisankho cha 2019, china mwazomwe chidzawalepheretse ndikuzimazima kwa magetsi. Ndipo sindikuchiwona chifukwa chimene boma la DPP likungowaweta akuluakulu olephera komanso mbuzi zaku ESCOM kumangozilipira ndalama zambirimbiri chifukwa chowayika aMalawi mumdima. 2019 tu wolephera sadzakhala a Escom ayi koma ife tidzidzati boma la DPP linalephera. Ndiye ngati nkotheka chotsani nyongolotsi zonse ku Escom zimene zikufuna kukugwetserani mdzenje zinthu zisanafike povuta.

    Aah! Amayi JB tikukulirani ife chifukwa munthawi yani zoterezi kunalibe. Kukhaladi mzimayi sichifukwa, nanga tawonani madoda andevu paliponse akulephera kutipatsa mphamvu za magetsi?

    Ndipo magetsiwo asakweze chifukwa ifeyo ndiamene timayenera kukadandaula kuti ntchito zathu ndi mabizinezi athu akulowa pansi chifukwa cha Escom, choncho amayenera kutipatsa chipukuta misozi.

    Ah! aEscom, agalu, anyani, zitsiru, mbuzi, afisi,atonkhwetonkhwe, anankalizi, analimata, afinye, apumbwa and etc. etc.

  4. Grevazio says:

    there is low voltage and unstoppable blackout . let people use charcoal .escom 1st Sort ur ploblem don’t reap whe

    re didn’t work. is same as cashgate

  5. thom says:

    Press release mr Escom says in Usd terms they have not increased teh tariffs, but Escom should understand our salaries are not in USD so how do you expect us to cough up more kwachas for kwacha devaluation. The root problem of this country is devaluation if that can be controlled inflation will come down. Can Chuka please explain to why the kwacha has lost so much value against the dollar in 6 months, why cant they reverse the policy of exporters retaining only 40% of the export proceeds as that will help the kwacha to stablisie. Currently the exporters are hoarding 100% of there export proceeds and that is the driving force for the excessive devaluation. Please Chuka revserse this policy for the help of poor malaiwans.

  6. Kapito is miles away from this dog called Gift Trapence. Kapito is for us. Gift is for them americans who like to fuck tudzi tonunkha.

  7. Mjomba Y KU Nselema says:

    Ngati dheel yake imeneyi nde or mutanena lero kuti kuti tikathamange nanu pa nseu tituluka mwakathithi madala

    thumb up Mr. Kapito !!

  8. selfish decision says:

    Let everybody citizen pay for electricity including staffs from escom , their chief executive so that we leave within the same level , waterboard so that they should feel the pinch.
    Its high time some of these prevellages should be removed from the so called bosses coz the don’t understand the pain the juniors come across.
    Mera useless board

  9. Kunjani says:

    Some of us have already felt the increase. Will it be given back? Thanx bwana Kapito

  10. Thom says:

    Well done Mr Kapito

  11. Zolo says:

    Well done Mr. Kapito. Mulungu akudalitseni. koma Amalawi akatipepmha kuti tiyeni tikapange Demo sitituluka, kuasiyila okha Mr. Kapito. He can’t do it on his own he needs our support.

  12. Rift Valley says:

    So many good things said about Kapito and I support all these. But we Malawians are a funny lot. I bet te majority of us would still vote in the same thieving crooks if the injunction stopping the tariff increase were obtained a week before elections in 2019.

    The Kwacha devaluing at such a break-neck speed is nothing but Government’s plan to ensure Malawians pay more kwachas to generate more tax revenue through VAT and the revenue so generated will help Government pay maturing debts incurred when the kwacha faired well against the dollar. The losers are the suppliers to Government.

  13. Matandani says:

    Big up bwana Kapito, the one who approved the hike gets free electricity from Escom, very selfish and inhuman Mr, Jere. They want the kwacha instability to be felt by the poor masses only while they enjoy free previledges. We are already been burdened by the MWK instability in almost all other expenditures.

  14. Chemuyaya says:

    How i wish the so called malawi leader had such ideas!

  15. Nangozo says:

    Bravo for fighting for us!! Even if it fails, atleast you have tried.

  16. mtumbukaweniweni says:

    KAPITO FOR YOUR INFORMATIONS WE HAVE ALREADY STARTED PAYING THE NEW PRICE,
    PLEASEE FOLLOW AND CHECK.
    DO IT FAST

  17. Just take Injunctions on any Basic Necessities that Poor Malawians can smile.lf you conduct Random Assessment,every comment supports you.
    You have support.
    Otherwise the 2016 you have started on very Good Note.
    Bravo KAPITO JOHN.

  18. Mphongozidana Ndau says:

    Bravo Mr. John Kapito. How I wish Malawi had a few guys like you. We would not have been taken for a ride as we have been over the years. Your lone voice is doing great things for Malawi customers. Continue doing the great job. I wish you all the best the new year of 2016 can offer you.

  19. Ndaziona says:

    Bravo Mr. Kapito. I salute you. Thumbs up.

  20. drakes says:

    The blach outs are so heavy regardless of some rains in the North and Centre Regions. The extravagance of Managers in Escom is not being checked by Mera due to the fact that they are part and parcel to looting also. Stop the extravagant Managers car scheme of Escom and channel the money into buying back up generators.

  21. La 40 Lakwana says:

    Stopping an injunction doesn’t mean anything , still the injunction will be lifted by the same ESCOM & MG.

  22. Mbuya says:

    Osati za enawa ati ufulu wa ma gay ife tidya magay’wo za zii Kapito big up !!!

  23. Mbuya says:

    Thats it boss akweze koma ma blackout dats not serious

  24. Joku joku says:

    Bravo baba Kapito and that’s coming!! Press the not even to dare increase the tariffs as the Zambian president Lungu has directed to lower the tariffs and why NOT Peter doing so???

  25. alhomwe atilaula says:

    Commendable job Kapito, anthu tikuvutika chiri chonse ndi chokwera koma Malawi abale!

  26. mulopwana says:

    zITSIRU ZA ANTHU.I THOUGHT ESCOM IS A PUBLIC INSTITUTION WHICH IS SUPPOSED TO BE RECEIVING SOME FUNDING FROM THE GVNT INORDER TO SERVE THE PUBLIC RESPONSIBLY?AFUNA NDALAMA AZIPANGA MA DONATIONS KWA PETER !

  27. joe says:

    I salute cama for the injunction.

  28. paul says:

    Please can you start also getting injuctions for kwacha devaluation, Pa january 4 monday kwacha wayamba pa 664 to dollar pa 5 january yafika mpakana 677, wrelo pa 6 january yafika mpakana 686 to dollar. What is happening to our country do we have a reserve bank bank or Government, there duty is to protect the poor from inflation and adverse currency fluctuations. Have we given green light to commercial banks to charge whatever they like, this devaluation is the root cause of inflation if we can tame the devaluation there will be no more tariifs hikes. Where are our economists are they in a coma, as the kwacha is bleeding to death

  29. Pamajiga says:

    Kapito kapito kapito kapito kapito kapiiiitoooooo! !!!! That’s a true activist! Osati zamathanyula ayi. Long live kapiiiitoooooo. Short live Trapence & Mtambo. Mbuzi za anthu.

  30. zander says:

    Well done Kapito!!!!!!!!!!

  31. Duma says:

    well done Mr. Kapito. We need people like you in this country.

  32. mphatso says:

    bravo kapito and cama you rock

  33. Njolinjo says:

    Kapito, you are my man.

  34. Guantanamo says:

    We upload Kapito now. But when he calls us to join him in a demo we stay put in our homes. Kapito will not fight for us for ever. He needs our support

  35. Njolinjo says:

    Malawi is about to explode. This government is stinking shit.

  36. noah says:

    well done CAMA..nafenso zinatiopsya two times in a row eish..! we are all struggling with theirs services and they have the nerve to hike the prices

  37. Victor Jumbo says:

    Well done CAMA for stopping these senseless electricity tariff increase by incompetent Escom bosses with massive monthly salaries for nothing. They either tolerate or indulge in corruption activities by demanding payments from people before they can connect electricity in people’s homes. How can the company grow if you let such kind of things happening. First put your house in order by making it a zero tolerance in relation to corruption. People are already paying too much for your very poor services. Don’t you Escom bosses feel ashamed? Invest in Solar system also so don’t need to rely on hydro power alone.
    Victor Jumbo

  38. ben says:

    Kapito Zinthu akukwera daily makhala board chair za SRWB muli zee, bwanji suku yankha za kwacha yafika 700 pa dollar, ma salaries yathu nsiku kwera. Mu yamba ma demonstrations peaceful liti za kwacha devaluation tatopa zinthu aku kwera daily, ana nsaku pita sukulu ma fees tiliba, Malawi kwacha aku nkhala ndaki madzi tingo nyamba ndaki zimbabawe ti sintha currency ikhale dollar kapena rand, zinthu zikhale bwino. Goodal yakhalamba

  39. Rift Valley says:

    I think Government supported the tariff increase not necessarily that the increase is waaranted but, rather, to ensure they generate more tax revenue through VAT. necessarily that the increase is warranted. I feel sorry for Goodall

  40. chokonoka says:

    That is the Kapito I used to know sometime back …not zinazi kungoti ziii…..u are a true Malawian…..kukuyika chibanzi pakamwa koma kulankhulabe….yes….magetsi ake oti akwelewo ndiati…zaziiiiiiiii….

  41. khumakhuma says:

    Bravo Mr. Kapito! The true Malawian hero; if there were ten (10) Malawians like him I am sure Malawi would be a better place to live and possibly our economy would be reasonably at a tolerable level. When some of those so called anamadyabwino and hold high offices in organisations handle issues of national importance, they should be thinking of the poor uncles and nieces at there villages so as to serve them better. Please a Malawi, let us join hands with people like Kapito and stop thinking like business as usual tendency. Ntchito yomwe mukugwira a Kapito, amene angathe kukuthozani mokwanira ndi Mulungu yekha popeza munthu ngati ine ndiosowa mau oyenera kukuthokozerani. God bless u abandantly!

  42. Benjones says:

    The government should understand that Malawian are human beings. The high cost of and low salaries have really effected us. Where can we get the money to pay for even the basic should be all become thieves and steal. Whatelse can we do life has become very hard for us.we do not have cashgate money like most of the government, civil servants and the business community.we are mere working class people who want to lead a clean life but this situation is forcing many to adopt a crooked life. Pls have mercy on us. Pls I beg to whoever is in charge.

  43. onaphi says:

    big up Kapito, apa ndiye zili bwino

  44. Nyenyezi says:

    Kapito, a man born an activist, sizinazi zokonda ndalama, akangopatsidwa chibanzi basi kuli zii, I now agree with you when you told Brian Banda on Times Exclusive about whether you will still put pressure on government after appointing you chair of SRWB. Your response was simple, ask me that question after six months, I will give you my position

  45. sam says:

    Kapitio can you please fight kwacha devaluation it is eating up my salary. Chuka has made a deal and sold our country export dollars to greedy mzungu exporters who are forcing the kwacha devaluation everyday. They force banks to devalue the currency if they want there dollars. The produce is from our farmers and mzungu exporters who are greedy and devils are taking malawi into extreme poverty. Please Kapito you are our only hope. Please fight Chuka NO 1 enemy of Malawi. Before there were regulations and now Chuka has removed all regulations allowing these colonial exporters to charge any price for the dollars they like at the bank. May lord give you the energy to fight this battle for the 16million Poor Malawians

  46. BRIAN KHANYIZIRA-CHILOMONI says:

    Bravo Mr KAPITO timakunyadirani pitilizani kutimenyela nkhondo

  47. Peter Boryczika says:

    Mwachita bwino

  48. Kanyimbi says:

    These are people who are needed in Malawi. Its sad that we have leaders who do not think. Just imagine in this high technology time someone to be thinking of a coal generated electricity instead of solar which is renewable, does not contribute to global warming, no transport needed, no more capital required to buy raw materials etc.

  49. Malawi we need leaders who can change. ..not to be rich by themselves. pakusoweka anthu oyima pa chilungamo mmene ndakalama yasoweramu. muwonjerzerensi.mitengo Ya katundu masarary sanalowenso……mulibe mayazi

  50. mbani says:

    to cover government sins the whole yoke on the poor

  51. Goddiea says:

    Kapito deserves national leadership! How can Escom raise tarrifs on us for its own future projects! If escom wants to invest in its so called projects the obtain loans from the banks! And you mera guys Kaye anakudyetsanipo you have goofed! How can mera approve an increase in tarrifs just finance future projects? If the projects are completed, will the tarrifs go down?? Look at you! Just thieves!! Wool!

  52. Mulopwana says:

    Bravo bwana Yohane Kaps. This is the way to go afinyeni ndithu kuti asafinye ife. Kaps apapa nde utayambisa chipani ukhoza kuwinatu 2019 mkukhala president

  53. Kapito ndi ana amuna even when he was at Mulanje Secondary School. He was a fighter who could not take any shit from anyboby including teachers. But what happens to the purchases we have made before the injunction. Is ESCOM to refund us or not? What is even painful is that ESCOM is demanding transport from those wishing to be connected. They say they have no vehicles to carry out customer connection duties as such they ask customers who would wish to be connected to provide transport for such connections. They have meters, cables and everything but minus transport. My country, our country Malawi. Bravo Kapito! You are for us.

    1. wovinidwa Ine says:

      I have heard about his “no bullshit” stance at MSS. It is legendary.
      Kapito found his calling there, and started practicing his tactics right there. One of many Mulanje wise boys and girls I know of.

  54. Investor says:

    Bravo CAMA .This is what we expected from you !!11

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