By Ayanda Dlamini
The Eswatini Electricity Company (EEC) has applied for a substantial electricity tariff increase of 20.67 percent for the 2026/27 financial year, a move that could significantly affect households, businesses, and institutions across the country if approved.
This was announced by Eswatini Energy Regulatory Authority (ESERA) CEO Sikhumbuzo Tsabedze at a media briefing held at Mountain View in Mbabane.
The application was submitted to the Eswatini Energy Regulatory Authority (ESERA), which has since invited the public and all interested stakeholders to comment on the proposed adjustment before a final decision is made.
ESERA notes that EEC’s request is driven by rising electricity import costs and unresolved revenue shortfalls from previous financial years.
In its submission, EEC explained that during the current 2025/26 financial year, several Power Purchase Agreements (PPAs) expired and had to be renegotiated.
These renegotiations resulted in material increases in import tariffs, particularly from key suppliers such as NTCSA/Eskom of South Africa, Electricidade de Moçambique (EDM), and the Ubombo Sugar Limited (USL) power arrangements.
In addition, an audited reconciliation for the 2024/25 financial year revealed an under-recovery, which further weakened the utility’s financial position. As a result, EEC is seeking approval to increase its revenue requirement for 2026/27 by E437.9 million.
This amount comprises E175.1 million to cover import tariff escalations and E262.8 million related to the 2024/25 under-recovery.
When translated into consumer tariffs, this means an additional 13.67 percent on top of the already projected average 7 percent increase, bringing the total requested hike to 20.67 percent, effective April 1, 2026.
In practical terms, this proposed increase would reduce the value consumers get for their money. For example, electricity worth E100, which currently purchases more units, would, under the proposed tariffs, yield about 32 units, highlighting the potential impact on household budgets and operational costs for businesses.
Electricity Outlook Positive
Despite the EEC tariff application Tsabedze believes the country’s long-term electricity outlook remains positive. He notes that recent power supply agreements signed with Ubombo Sugar Limited, together with the ongoing solar energy project in Motjane, are expected to strengthen domestic supply.
He said that if all goes well with the recently concluded electricity deals, Eswatini would not face electricity scarcity, adding that the projects are aligned with the government’s broader goal of improving energy security and reducing reliance on imports.
ESERA emphasized that the increase is not yet approved and will undergo a full tariff review process in line with the Energy Regulatory Act, the Electricity Act, and the Tariff Methodology. As part of this process, the regulator is actively seeking public input to ensure transparency and fairness.
To gather views, ESERA has scheduled a series of public hearings across the country between January 20 and 24, 2026, targeting the general public, trade unions, consumer groups, businesses, farmers, churches, schools, and government ministries.
Venues include Nhlangano, Ezulwini, Siteki, Mbabane, and Manzini. The full tariff application is available on the ESERA website and its official social media platforms.
Tsabedze encouraged consumers to participate in the process, noting that public input plays a critical role in shaping the Authority’s final decision on electricity tariffs that affect the entire nation.