UK Development Bank weighs investment in Africa gas projects, including in Mozambique
The Public Integrity Center (CIP), a Mozambican NGO, today called for the reversal of the electricity price increase in the country, saying that public utility Mozambique Electricity (EdM) had usurped the powers of the sector regulator.
“The Energy Regulatory Authority (Arene) should urge EdM to cancel its announcement increasing electricity prices, given that it results from an act of usurpation of powers,” the organisation said in a statement.
According to the CIP, “the increase, without convincing justification, of the energy price is due to the ineffectiveness of the sector regulator and abuse by EdM of its dominant position [in the market]”.
More than a year after the creation of the Energy Regulatory Authority (Arene), the public company “continues to dictate, in violation of the law, the rules of operation of the electric subsector”.
The NGO considers that there is a contradiction with the “regulated and liberalised” market.
EdM increased the prices of energy by around 21% on March 1, but kept the social tariff for low-income customers unchanged.
According to a notice published by the company, the increase aims to “ensure a financial balance that allows for the continuity of safe, quality energy supply”.
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