The Eswatini Energy Regulatory Authority (ESERA) has officially revised the electricity tariff adjustment for the 2026/27 financial year, dropping the average increase from 13.61% down to 11.74%.
As a result, E100 now gets the consumer 36.10 units compared to the 35.46 units one would have expected from the previously announced 13.61% hike.
This adjustment, which will become effective on April 1, comes after a direct intervention from the Government, which has committed E200 million in special funding over the next two years to protect the economy from acute energy price shocks.
This intervention, announced by Prime Minister Russell Mmiso Dlamini recently, is designed to ensure the financial sustainability of the EEC while shielding households and businesses from the full weight of prevailing economic pressures.
The move followed a detailed review of the tariff adjustment application submitted by the Eswatini Electricity Company (EEC), which was initially driven by material increases in the cost of imported power and an under-recovery recorded in the previous financial year.
The initial pressure for a hike was born from renegotiated Power Purchase Agreements (PPAs) that forced the utility provider to seek significant price adjustments. However, following the Speech from the Throne and a series of nationwide public consultations, Government resolved to step in.
According to a statement issued by CEO Skhumbuzo Tsabedze, the E200 million funding is being deployed through a specific smoothing strategy aimed at long-term stability.
“As stated by the Government, that “the regulator working with EEC will decide the extent to which this funding will bring relief to the public and to mitigate future acute increases, ” said Tsabedze.
After analysing the impact of the Government intervention, and engaging with the public, ESERA determined that for the 2026 period, E60 million of the allocated funds will be used immediately to lower the current year’s tariff.
“This partial utilisation ensures immediate relief to consumers,” he said.
The remaining E40 million, combined with the additional E100 million set for 2027, will be held in reserve, ‘thereby supporting tariff smoothing, and reducing the risk of acute tariff increases in subsequent years’.
“As a result, the average tariff is revised from 13.61% to 11.74% for FY2026/27”.
While the revised average increase is 11.74%, the impact varies across different customer categories.
Domestic households will see a 15.09% increase, while energy charges for corporate customers, including both time-of-use and non-time-of-use categories, will rise by 14.95%.
Demand charges are also set at 14.95%, while facility and access charges will only increase by the approved inflation rate of 4.86%.
In a move to protect the most vulnerable citizens, the Lifeline tariff increase has been strictly limited to 6%.
This decision represents a delicate balancing act between utility sustainability and consumer protection.
For Eswatini’s business community, the 11.74% figure is now the new operational baseline. While higher than inflation, the government’s E200 million commitment ensures that the leap is not as devastating as initially feared.