In response to the swift and impactful 44% devaluation of the local currency, the government has taken decisive action to alleviate the economic strain on citizens. Effective from December 3, 2023, Minister of Energy Ibrahim Matola, speaking in Blantyre, announced the reversal of electricity tariff adjustments for domestic users. According to Matola, President Dr. Lazarus Chakwera’s consideration of the economic hardships faced by Malawians prompted this decision.
Consequently, the previously implemented 40.9% increase in electricity tariffs on November 10, 2023, will not be applicable to domestic users until April 2024. It’s important to note that these new tariffs exclusively pertain to industrial and commercial users. Furthermore, Minister Matola emphasized that companies involved in the production of goods or engaged in the agriculture sector will benefit from lower tariffs.
The origin of the 40.9% electricity tariff increase lies in the Automatic Tariffs Adjustment Formula, a direct consequence of the 44% devaluation of the Malawi Kwacha. This strategic intervention aims to address the economic challenges posed by the currency devaluation, demonstrating a commitment to supporting both domestic users and key sectors of the economy.