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Economy Energy & Infrastructure Latest News

EEC Proposes 25.51% Tariff Hike for 2025/26 Financial Year

5 November 2024
Staff Reporter

By Phiwa Sikhondze

The Eswatini Electricity Company (EEC) has submitted a request to the Eswatini Energy Regulatory Authority (ESERA) for substantial electricity tariff increases, seeking an average hike of 25.51% for the 2025/26 financial year and 27.06% for 2026/27.

The proposal was disclosed by ESERA’s CEO, Skhumbuzo Tsabedze, during a press briefing at Mountain View Hotel in Mbabane.

According to the application, EEC seeks a revenue requirement of E4.2 billion for the 2025/26 financial year and E4.57 billion for 2026/27. Notably, the proposed tariff hikes exclude the 2.5% electrification access fund levy and 15% VAT, which means the final increase felt by consumers may be even higher.

As mandated by Eswatini’s energy regulatory framework, ESERA is responsible for evaluating all proposed tariff changes to ensure they are justified and reasonable. In accordance with Section 5 of the Energy Regulatory Act, ESERA has commenced a three-month review process, set to conclude by February 1, 2025.

This thorough examination will involve assessing EEC’s cost structures, projected revenue needs, and the potential impacts on both consumers and businesses across Eswatini.

“This review process is not simply procedural; it’s an essential step to balance the financial sustainability of our electricity supplier with the affordability for our people,” Tsabedze noted.

ESERA has scheduled several public hearings across the country to provide a platform for feedback from consumers, business owners, trade unions, and other stakeholders. These sessions will offer citizens an opportunity to voice concerns, ask questions, and discuss potential impacts of the proposed rate increase.

Below is the schedule for the public hearings:

  • Friday, Nov 15 – Trade Unions/Consumer Groups, The George Hotel, Manzini, 9:30 am
  • Saturday, Nov 16 – General Public, Siteki Hotel, Siteki, 10 am
  • Friday, Nov 22 – General Public, Riverside Hotel, Big Bend, 10 am
  • Saturday, Nov 23 – General Public, EWSC Auditorium, Nhlangano, 10 am
  • Wednesday, Nov 27 – Government Ministries and SMEs, Happy Valley, Ezulwini, 9:30 am
  • Saturday, Nov 30 – General Public, Thokoza Center, Mbabane, 10 am
  • Wednesday, Dec 4 – General Public, KDDP Hall, Sihhoye, 10 am
  • Saturday, Dec 7 – General Public, Caritus, Manzini, 10 am

Additionally, written comments on the tariff application are welcomed and may be submitted via email at info@esera.org.sz by December 14, 2024. EEC’s full application is available for public review on ESERA’s website (www.esera.org.sz) and social media platforms.

Tsabedze provided a breakdown of the proposed rates. Currently, an ordinary consumer receives 43 units of electricity for E100.

Under the proposed hikes, this would reduce to 32 units in 2025/26 and 24 units in 2026/27. Consumers on the poverty lifeline tariff, who currently receive 72 units for E100, would see this rate drop to 53 units in 2025/26 and 40 units in 2026/27.

Small commercial users, such as spaza shops and salons, who currently receive 36 units for E100, would experience a reduction to 28 units and 22 units over the respective years.

ESERA is expected to announce its final decision on EEC’s tariff application by February 1, 2025. Until then, the hearings and written submissions will play a significant role in shaping the outcome.

Stakeholders and the public are encouraged to participate actively in this process, as their input could influence the direction and scope of the proposed changes.

For additional information, the public can contact ESERA’s Manager of Consumer & Stakeholder Management at 78089945 or 2404 2103.

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