The Electricity Supply Corporation of Malawi has announced a downward review of its electricity pricing mechanism, which is an initiative called Life-line tariff.

According to a released statement, Life-line tariff is aimed at making electricity affordable and available for low-income households. The new pricing will avail a minimum of 50 units per month at K47.50 from K63.79, regardless of number of purchases made. However, units above 50 will be bought at K67.25, an increase from K63.79.

The Life-line initiative has also increased units per purchase; for instance, K500 can now buy 9 units, which was 7 units before the initiative was rolled out. Likewise, while K2000 would buy a customer 27 units, which has now increased to 36 units. The units increase for purchases worth K20000 and lower.

However, it is noted that purchases higher than K20000 now buy lower units than before. For instance, before the announcement, K50000 bought 538 units; now the same amount of money buys 525 units.

While this may confuse customers, the initiative has made electricity units more affordable for low-income households, while slightly decreasing units for bigger purchases by high-income households.