REVIEW PROCESS FOR ESCOM’s ELECTRICITY BASE TARIFF APPLICATION

The Malawi Energy Regulatory Authority (MERA) would like to advise stakeholders and the general public that it is still in the process of receiving feedback on the Electricity Base Tariff Application submitted by Electricity Supply Corporation of Malawi Limited (ESCOM) and that a decision is yet to be made.

 

Key steps for reviewing the electricity base tariff application

 Preliminary Review of the application’s completeness:

The base tariff is a multiyear tariff determined for implementation over a four-year period. On 20th April 2018, ESCOM applied for a new base tariff that will be implemented over a four-year period from July 2018 - June 2022. Following receipt of the application, MERA undertook a preliminary review to validate the application by ensuring that ESCOM submitted all relevant information in the prescribed format to facilitate the review process by the Authority.

 

  1. Stakeholder Feedback on the Base Tariff Proposal:

It is a legal requirement under the Energy Laws that before the Authority approves a new base tariff or a new tariff adjustment formula, the proposed tariff revision should be published and public hearings be held.

On 23rd June we published a notice and the base tariff application on the MERA website. From 25th June the notice on the application was published and aired in the print and electronic news media.

Stakeholders and the general public were given three weeks to provide their written comments and observations to MERA and ESCOM from 25th June – 15th July,2018. The period for receiving comments was extended to 2nd August, 2018.

MERA organised three regional public hearings as a platform for service providers, policy makers, utility customers, investors, financiers and other stakeholders in the energy sector to make contributions in the discussion on the new ESCOM base tariff application submitted to MERA. The hearings further afford stakeholders and the general public an opportunity to understand the basis of the proposed base tariff and a new base tariff setting framework which reflects the unbundled electricity market in Malawi.

The first public hearing was held in Blantyre on 6th August 2018; the second hearing was held in Lilongwe and the last one will be held on 10th August 2018 in Mzuzu.

 

  1. Detailed Review of the Base Tariff Application:

After the public hearings MERA shall conduct a detailed financial, economic and technical analysis of the application and will consider the stakeholder submission and feedback made at the public hearings. Thereafter, the Energy Pricing Committee, a committee of MERA Board responsible for reviewing and approving energy price proposals and all matters incidental to tariffs in the energy sector, will consider the detailed analysis report on the ESCOM base tariff application.

 

  1. Determination of the Base Tariff

The draft electricity base tariff Report and EPC recommendations will be presented to the MERA Board for consideration and approval. The MERA Board will appropriately communicate its decision on the ESCOM application to all stakeholders and the general public through various media.

Stakeholders and members of the general public who have not been able to participate in or present their views at the public hearings still have an opportunity to submit their comments in writing by 16:30 hrs. on Friday, 17th August, 2018 to the following address:

 

The Chief Executive Officer

Malawi Energy Regulatory Authority

2nd Floor, Development House, City Centre

Private Bag B-496

Capital City

LILONGWE 3

 

Phone        : 01 774 103/135

Fax No.      : 01 772 666

E- mail       : This email address is being protected from spambots. You need JavaScript enabled to view it.

The base tariff application is available on ESCOM website (www.escom.mw).