The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says industry can benefit from lower operating costs if it embraces the demand side electricity management initiatives being implemented by the Electricity Supply Corporation of Malawi (Escom).
The development comes at a time when the Malawi Energy Regulatory Authority (Mera) has just approved a 7.5 percent power tariff jump from K 53.69 to K 57.02 per kilowatt-hour.
Escom is implementing demand side management techniques as part of efforts to control energy consumption by creating a balance between supply and demand.
MCCCI president Newton Kambala says lower tariffs being given to companies that shift production to off-peak hours would help reduce the cost of doing business which is critical in the current economic environment.
“Many countries have embraced these initiatives and they are working. I think all it needs is mind-set change as utilising the idle off peak hours for production has many benefits to industry,” he said.
Kambala said shifting production to night hours, for example, would bring various benefits to businesses including maximising production as there are few distractions in the evening.
However, he noted that the energy sector remains conducive to investment citing Malawi’s inadequate generation capacity as being a barrier to new entrants into the market.
Kambala said in the long term, both Escom and government need to find ways to increase generation capacity to accommodate more investors.
“It is still a concern that electricity woes continue to mar our operations. We need bigger capacity so that everyone in the market has access to power to be able to maximise production,” he said.
Meanwhile, Escom says talks with some independent power producers are progressing well and that once concluded, Malawi’s generation capacity will be boosted as the firms will invest in solar, coal as well as hydro power generation.
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