Mozambique: EDM records positive results of over 4.8 billion meticais
The public company Mozambique Electricity (EDM) announced on Wednesday in Maputo that it was negotiating readjustment of the energy tariffs with the government.
“We have been presenting to the government the company’s costs, the sales price to the customer and how the tariff has to evolve to cover the costs,” EDM’s commercial director, Benjamim Fernandes said, quoted by the official Information Agency of Mozambique.
According to Fernandes, it is necessary to update the tariffs, otherwise the company will be offering power at a rate lower than the purchase price.
The statements come after the Mozambican civil society organisation, the Public Integrity Center (CIP), announced that the Mozambican government and Mozambique Electricity should not stipulate energy prices, competence to do so lying with the Energy Regulatory Authority (ARENE).
The CIP said in a statement released on Monday that, according to the law that created the ARENE, it is up to this entity to fix and approve tariffs and prices for energy, gas and petroleum products.
Any adjustment made in any other way, in the short or medium term, “will be illegal”, the CIP says, pointing out that the law creating the energy sector regulator is already in force.
According to NGO calculations presented in September the cost of electricity has already increased “over 200 percent for large consumers and about 120 percent for domestic consumers” since the last general elections, in 2014.
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