Centre for Democracy and Economic Development Initiatives (CDEDI) has asked the Electricity Supply Corporation of Malawi (ESCOM) to reverse decision on tariffs hike, describing it as illegal.
The call follows revelation that ESCOM hiked the tariffs without any approval from the Malawi Energy Regulatory Authority (MERA).
In the statement CDEDI Executive Director Sylvester Namiwa described the news as as it is illegal for ESCOM to make unilateral decisions.
“We are, therefore, inclined to believe that the Tonse Alliance Government is remotely controlling MERA to push the blame on ESCOM, following a backlash from the public over exorbitant charges, tariffs and levies on essential services and products such as water, electricity, fuel, cooking oil, etc.
NAMIWA: ESCOM Should pay back to consumers
The Centre for Democracy and Economic Development Initiatives (CDEDI) has demanded Electricity Supply Corporation of Malawi (ESCOM) to pay back to the consumers for ‘illegally’ increasing electricity tariffs.
This follows revelations that ESCOM board agreed to increase Electricity Tariffs without authorization from the Malawi Energy Regulatory Authority (MERA).
MERA told the Parliamentary Committee on Natural Resources last week that ESCOM acted against its advice not to raise the tariffs in March 2021.
The development angered members of Parliament (MPs) who wondered how the electricity supplier could make unilateral decision on the tariff.
On the other hand, CDEDI executive director Sylvester Namiwa demanded that MERA should take a disciplinary action against ESCOM management over what he described as “this embarrassing incident”.
Hearing of a case involving former Malawi Energy Regulatory Authority (Mera) Chief Executive Officer (CEO) Collins Magalasi and three others has resumed this morning in Lilongwe before Chief Resident Magistrate Patrick Chirwa.
Magalasi alongside Mera`s spokesperson Patrick Maulidi, Procurement Officer Bright Mbewe and the CEO`s Business Associate Dorothy Shonga popularly known as Cash Madam were charged with 16 counts which include fraud, money laundering, making false statement and knowingly using falsified documents with intent to deceive.
However, Shonga has asked the court to give her three to four weeks to engage another lawyer arguing she does not want to be represented by her former counsel anymore.
Escom officials in a meeting with Parliamentary Committee on Natural Resources and Climate Change
BLANTYRE-(MaraviPost) In a clear display of arrogance, Electricity Supply Corporation of Malawi (ESCOM) went ahead with their greedy decision to hike electricity tariffs despite Malawi Energy Regulation Authority (Mera) advising them to put the adjustment on hold.
This has been revealed during an interface with the Parliamentary Committee on Natural Resources and Climate Change today Tuesday 27th April, 2021.
According to Welani Chilenga, the committee’s chairperson, Escom officials told him earlier that the increase was made to bail out the institution from its financial quagmire, and based on the minister of energy’s statement in parliament.
One of the country’s leading financial institutions, National Bank of Malawi (NBM) plc have warned that the effects of the recent fuel price increases will soon have a direct impact on people’s lives.
The Malawi Stock Exchange (MSE) listed bank in its April 2021 Economic Newsletter, however, says the inflationary pressure is expected to ease in the second quarter of 2021 largely due to the benefits of relatively low food prices in prospect of a good harvest this year.
Kapito: Poor Malawians are at the receiving end
“The Malawi kwacha depreciated by 4.6 percent against the dollar in the second half of 2020,” reads in part the bank’s newsletter.