Mining & Trade News

The Malawi Energy Regulatory Authority (MERA) says it has embarked on a campaign of promoting alternative sources of energy including Liquefied Petroleum Gas (LPG) and Biogas with an intention to scale up LPG usage in the country to 3% by 2023.

MERA Public Relations Officer Fitina Khonje told Mining & Trade Review that the regulatory body is promoting the alternative sources as they are tried and tested cleaner, convenient and environmentally friendly alternative sources of energy.

Khonje said the efforts are meant to discourage use of unsustainable and polluting sources of energy.

Khonje said: “We intend to stimulate LPG usage to 3% by 2023. We are noting growing interest in LPG and we know this target is achievable.

“When consumers appreciate and experience the positive attributes of gas and accessibility is enhanced, LPG will be an automatic choice just as it is in many countries.”

“MERA is not working in isolation on this drive. We are supporting the implementation of the Energy Policy and there is high government and other stakeholder interest to push up household and commercial usage of LPG.”

Khonje further said there is huge hope for the promotion of LPG to be successful following various efforts by both MERA and the government to ensure that LPG is affordable and accessible in the country.

She said apart from the introduction of zero rated value added tax on LPG since October 2019, MERA has reduced licence fees and technical regulations for LPG outlets.

According to Khonje, MERA believes that incentives being rendered to LPG operators can also be passed on to customers to encourage consumption.

Khonje said: “In addition to this, more operators in the LPG sector will push down prices through economies of scale and will lead to wider distribution networks and accessibility.”

“We have also relaxed licensing conditions in order to attract more players including gas importers and gas retailers.”

“We will be holding information sessions on Gas Retailing in few weeks’ time and we encourage those who are interested to register with MERA to attend.”

Khonje also disclosed that MERA is currently lobbying Government through the Ministry of Finance to consider removing duties and VAT on LPG accessories and appliances.

However, commenting on the safety handling and usage of gas, Khonje lamented safety risk perceptions to have contributed towards the low uptake of LPG in the country.

Khonje said MERA believes that increased consumer awareness coupled with regulatory monitoring and enforcement of standards will facilitate understanding and adoption of safe practices.

According to Khonje, MERA has a dedicated team to ensure LPG safety standards are being upheld.

She said MERA is also conducting routine inspections of all LPG outlets and that required corrections are followed up whereby LPG retailers are required to give safety trainings to first time users.

Khonje added that the regulatory body is also disseminating Information, Education and Communication (IEC) materials on safety and proper LPG usage.

Meanwhile, apart from the LPG and biogas, the regulator is receiving encouraging reports on the uptake of solar energy in the country.

Khonje however said, though the country’s adoption rate for solar energy is encouraging, there is still more to be done to create awareness on standards, encourage usage of MERA licensed installers and encourage increased usage at commercial and institutional level.

As part of their mandate, MERA is entitled to facilitate increased access to energy supplies; promotion of energy efficiency and energy savings; and promotion of consumer awareness and education on energy issues.

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