After reviewing Escom tariffs according to the Automatic Tariff Adjustment Formula (ATAF) the Malawi Energy Regulatory Authority of Malawi has resolved to maintain tariffs at the current average of K88.02/kWh as the ATAF outcome is within the ±5% statutory trigger band.
A statement signed by Mera Board Chairperson Rt. Rev. Dr. J.P. Bvumbwe and Mera Chief Executive Officer Dr. Collins Magalasi, says that inflation was at 9.3% during the last time electricity tariffs were revised. “Since then, the economic fundamentals have changed, with the Kwacha depreciating to MK751.99/US$, while inflation has eased down to 9% as noted in June 2019. Applying the same to the automatic tariff adjustment formula (ATAF), results into a 1.14% potential upward tariff adjustment” said part of the statement.
Mera recently reviewed pump and wholesale prices for Petrol, Diesel and Paraffin, announcing that the new pricing is the same as announced on 12th January 2019.
In a statement, the Authority said that the resolve follows Mera Board’s assessment of FOB prices on the international market and exchange rate movements, as well as the subsequent decision to cushion the noted increase of the landed cost of the three petroleum products through the Price Stabilisation Fund (PSF).