Malawi electricity tariff up by 24.6 percent: Mutharika to commission Escom gensets

President Peter Mutharika on Wednesday will commission the Electricity Supply Corporation of Malawi (Escom) power generators that are expected to add 55 megawatts (MW) to the country’s national power grid which will be followed by hike of electricity tariffs for an average of 24.67 percent.

ESCOM gensets in the truck
Magalasi: New tarrifs to start after installation of gensets

The gensets are expected to ease extended load shedding hours as Malawians have been experiencing which Escom attributed to the decline in the water levels in Lake Malawi and the Shire River.

However, the genesets will come with a price, as Malawi Energy Regulatory Authority (Mera) approved Escom’s application on increasing electricity tariffs by 24.67 percent on condition that the service provider starts using the gensets.

Mera chief executive officer Collins Magalasi said they received “a request” from Escom to increase the tarrifs last year but they asked the service provider  not implement the approved tariffs  when it starts “supplying power from the generators.”

Currently, Escom charges K58.80 per kilowatts per hour and with the 24.67 percent hike, the price of electricity per kilowatts will likely increase to K73.23.

Consumer Association of Malawi  (Cama) executive director John Kapito said what it matters is “Malawians to have electricity all times.”

Initially, the gensets were supposed to start running from October last year but failed due to what the Office of the Director of Public Procurement (ODPP) described as Escom’s poor handling of the procurement process as no single generator had been procured by then.

It is reported that in December 2016, Escom’s evaluation committee recommended that lots one and two in Mapanga and Kanengo be awarded to APR energy with evaluated prices of $34.6 million and $24.9 million while lot three at Chinyama in Kasungu was recommended for award to Aggreko International Projects at $18.9 million.

However, when the bids’ evaluation team presented its report to the internal procurement committee (IPC), the recommendations were not upheld.

The geneset deal has been riddled with corruption and leader of opposition Lazarus Chakwera said in Parliament that there should be an inquiry.

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Kent Y.G. Mphepo
Kent Y.G. Mphepo
2 years ago

In need of clarification: when we talk about “genset procurement,” what do we exactly mean: the gensets were “hired” from Aggreko or they were “bought” from Aggreko? I happened to be part of the civil society team that went to inspect the arrival of the genset at Mwanza border. My understanding then was that government had “hired” the gensets and not “bought” the gensets. If the issue is “hiring” I don’t really see the logic of the country spending more money to launch the “hired” gensets by the “President” who would, obviously, be accompanied by his cabinet ministers, PSes and… Read more »

Yankho
Yankho
2 years ago

President to commission electricity tariff increase kikikiki

Odala
Odala
2 years ago

BOMA Lenileni labwino ndi ili!!!!!!!!!!!!!!

How I wish
How I wish
2 years ago

Kunena Zoona, commissioning of 55 MW Generators does not require the Head of State.. coz nothing will change.. black out will always…
I always cry when I hear such nonsense happening in my country.. I happened to stay in one country in Asia.. you could see so many construction of better roads/ sky scrappers almost in every state you go, but never heard that the prime minister is doing ground breaking sermon/ commissioning something..
I have no better words to describe our African political leaders… But we need someone with a positive mind to lead our country.

nkonsimphile gumede
2 years ago

glorifying mediocrity!!!!!

Wanjiku
Wanjiku
2 years ago

A Magalasi achira tsopano

pondamdima
2 years ago

But we were told that the coming in of Genesets will not affect the electricity tariffs komaso abomawo sakubwera poyera kuuza dziko kuti achita “hire” tikangopanga ma elections in 2019 akazibweza just as they did in Area 23 by-election, zigayo zaulele ataluza anazula, boma lachinyengo ili— DPP woyeeeee

Tpain
Tpain
2 years ago

Nanenso kwampenya chonena chandisowa dziko lanunkha ili

Timve & Tsala
Timve & Tsala
2 years ago

Boma iloooo!1!! DPP Women, sing this song > Mumatinenaaaa kuti sitiyatsa getsiiii , lero tayatsaaaaa muva mbebeeeee . Alalatanu kuti “chief of thieves” manyazi akumatilireni ndi m’bulangete momwe.

Nyapapi
2 years ago

Mziwanso lyolyolyoooo

ndine MSOWOYA WOPANDA MZERU
ndine MSOWOYA WOPANDA MZERU
2 years ago
Reply to  Nyapapi

this government is very though to understand .poti magetsi ondulawo tizigula tonse if a MCP ,DPP tiziwonera tose izi …amalawi kusamva peter ndiwoyipa koma inu kumangoti awinaso thats very bad how can we relate kuyakaya kwa magetsi with 25% price increase yet chipulezidenti chanucho daily chikumanena kuti inflation ili pa single digit ndiye kuti zithu sikwera mtengo kodi amalawi azanga uku sikukweza

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