Mera warns rise in electricity tariffs over delays in coal plant construction

Malawi Energy Regulatory Authority (Mera) has hinted of further rise in electricity tariffs should delays to construct Kammwamba coal plant continue.

Mera exeutive director Collins Magalasi said this on Thursday after the minister of Natural Resources and Energy Binton Kutsaira toured the place where the coal plant is to be constructed

“The electricity tariffs can go up within two years. This is because if the coal plant is up and running, the tariffs would go down because it is cheaper to produce electricity with a coal plant than hydro-power,” said Magalasi.

He said 300 megawatts which the coal plant can offer to the Egenco power grid can have a positive impact on the electricity pricing.

Kammwamba coal plant is expected to produce 1000 megawatts when in full operation and will be financed with a grant from the People’s Republic of China.

Egenco chief executive offcer William Liabunya attributed the delays to the process of consultancy on the running and operations of the coal plant.

“We would like to know what exactly we will be doing when the coal plant is operational,” said Liabunya.

Kutsaira said the project is one of the signature development projects of president Peter Mutharika.

He said the president advised the engineers to take time before the plant is fully operational so that it is constructed to detail.