Email a copy of 'Mera denies Escom 60% tariff hike instead approve 31 % effective Oct 1' to a friend
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Email a copy of 'Mera denies Escom 60% tariff hike instead approve 31 % effective Oct 1' to a friend
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Main opposition Malawi Congess Party (MCP) has directed that no member of the party, especially the youths should paint their...
Kuba too much ku ESCOM koma apa mukuwonjezela mitengo
Whether the increase is justifiable or not, the fact of the matter is that the consumers will be hit where it hurts the most. The increase will substantially reduce disposable income further reducing economic activity resulting in lower GDP. If inflation is in single digits and yet electricity is going up at 20% in the first year; then we have a biiig problem. People will be much worse off than they were last year. This will be made worse with the increase of fuel which will then push up the price of ordinary goods and services. Tighten your belts my… Read more »
let us blame colonialism
What people don’t understand is that this hike is not enough. EGENCO still selling atrates that are below proper production cost. The fact that its a reverend that approves business decicions on pricing is a problem.. Sadly Malawians don’t learn. They pay too little for electricity and then wonder why that electricity service is poor. If you pay peanuts then prepare to get monkeys.
Production costs in Malawi parastatals are always high due to failure to properly account for overheads and control waste. This cannot be passed on to the consumers. We new the creation of EGENCO is another channel of wastage that if not properly handled will kill the Malawi economy. It is sad that those who heading EGENCO are busy preparing monkeys for the consumers to get.
We pay some of the lowest rates on power in the world at K60/kwh. Cost of power has lagged behind inflation. But ESCOMSs costs haven’t. Removing government inefficiency helps but does not solve this problem. And remember we not only need to pay the cost of power production but also the cost of building new stations. And the new power coming from Moz and Zambia costs more than our rates. There’s no escaping this. We have not earned the ability to have some of the cheapest power costs in the world.
Mr Dookoo, with all due respect Malawians are one of the lowest paid in the region. You can not expect a teacher whose getting k50,000 to be paying k300/kwh for electricity, that will be way over their reach. If you really look at it, Malawians are paying for the electricity prices to be subsidized. The country uses a command economy system where government controls prices of most commodities so that everyone can afford them. However, that has some negative impacts like people paying high taxes so that government can afford to regulate the prices. So if you look at it… Read more »
We pay for blackout, state capture funding dpp, we also pay for corrupt gensets procument!! So tell me more about production cost! We basically paying escoms inefficiencies! I dont know which world u living in where u pay high prices for sub-standard services.
and yet my salary increment was only 5%, like that isn’t bad enough… ziliko ku malawi, we face hikes of everything atleast twice every year, koma salary ili pompo.. kaya…
Mathematically, MERA has approved 1.2×1.07×1.03×1.1 which is equal to 1.454772. Effectively, the approval is of 45.5%. I don’t know where 31.8% is coming from. This country is really on fire.