Mzuzu, Malawi: Consumers of water supplied by the country’s statutory boards and those relying on hydro-electric power supplied by the Electricity Supply Corporation of Malawi (ESCOM) for either industrial or domestic purposes have started noticing the effects of tarrif hikes put across for consideration by the utility companies a few weeks ago.
A visit to a number of townships in all the urban centers across the country have registered drastic reduction in amount of units consumers buy when procuring the services using prepaid credit facilities.
Patuma Bakali, a resident of Chilobwe Township in the city of Blantyre could not hide her stress with the use of electricity in her confectionery business saying despite the adjustment upwards of electricity tarrifs the supply still remains erratic on her good working days which are mostly Sundays.
Bakali said it is for this reason that she has now resorted to use other energy sources like the Liquified Petroleum Gas (LPG) which she says has now provided an alternative to the expensive hydro-energy supplied by ESCOM.
Responding to an outcry from most energy users, 265 Energy Limited’s Sales Executive, Chikondi Sanga attributed to the knowledge gap existing among those still complaining about the expensive and unsustainable energy sources nowadays.
Sanga said currently, Liquified Petroleum Gas is much more cheaper than any other energy source one can find on the market be it firewood, charcoal or hydro-power energy because its price has remained constant despite some logistical and economic factors affecting the marketing of the commodity.
“265 Energy Limited is among companies providing sustainable solutions to the energy woes currently creating panic to consumers and the environment, we are still selling gas at very cheap prices as you’re aware cooking using gas is instant and very efficient,” Sanga said.
The price of Liquified Petroleum Gas has remained constant for quite some time since government in one of its recent fiscal budgets waved its landing cost hence stabilisation of both, the cost and selling price.
Recently, following an announcement of the upward adjustments of water and electricity tarrifs, the Consumers Association of Malawi (CAMA) threatened to sue government if it approves water and electricity tariff hikes of more than 20 percent.
Addressing journalists in Blantyre, CAMA’s Executive Director, John Kapito said while raising the tarrifs will have implications on the cost of living and production, the boards have failed to implement main key performance indicators including improving efficiencies and debt collection from government agencies.
“What we are saying is that we understand that boards need more revenues but if they raise the tariffs by over 20 percent, we will take legal action once they gazette the new tariffs.” said Kapito.
However, the boards justified the proposed adjustments owing to the devaluation of the kwacha by 25 percent and government’s delay to implement proposed tariff increases in the current financial year despite Cabinet’s approval.
