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ESCOM’S COST OF SERVICE STUDY ON TRACK

A consultancy Cost of Service analysis to determine appropriate tariff levels at ESCOM is currently on course and is expected to be completed by September 2017.The study-which commenced in January 2017 and is funded by MCC-will enable the parastatal develop correct and appropriate tariff application governing the electricity tariff regime, once completed. The consultant is also expected to support ESCOM and EGENCO in preparing a four year base tariff for implementation from July 2018 to June 2022.The rationale is to help ESCOM achieve a full cost reflective tariff whose objective is to ensure that ESCOM becomes financially viable. This is part of Malawi Compact’s Power Sector Reform Program (PSRP), designed to support Malawi Government’s policy reform agenda and capacity building in key sector institutions such as ESCOM, MERA, EGENCO and the Ministry of Natural Resources, Energy and Mining.