US Calls For Cost Reflective Electricity Tariffs

US ambassador to Malawi Virginia Palmer has called for cost reflective electricity tariff as one of the measures for Malawi to qualify for next MCC Compact funding.

Palmer said Malawi also has to address corruption and implement some administrative reforms at Electricity Supply Corporation of Malawi (Escom), adding Malawi is on course to complete the compact successfully.

The 350 million dollar power sector compact winds up in September this year.

 “There are two criteria that Malawi has to fulfill; the first is that they have to pass critical indicators that are international standards, that is corruption. The second criteria is that the first compact has to be a success and that include making Escom financially viable,” She said.

She added: “Escom has to make as much money by selling electricity as it cost them to produce it, right now they’re selling it for less than it cost to produce them.”