By Siphesihle Dlamini
Set to impact electricity consumers across Eswatini, the Eswatini Electricity Company (EEC) has submitted a request to the Eswatini Energy Regulatory Authority (ESERA) for a staggering revenue requirement of E4,219,416,214 for the financial year 2025/26.
This request is expected to result in an average tariff increase of 25.51 per cent. Furthermore, the projected revenue requirement for the subsequent financial year, 2026/27, has been set at E4,570,140,772, translating to a 27.06 per cent tariff increase.
These figures do not include the 2.5 per cent electrification access fund levy and the standard 15 per cent Value Added Tax (VAT).
RELATED: EEC presents E930,000 CSI partnership package
The announcement was made by ESERA’s CEO, Sikhumbuzo Tsabedze, during a press briefing held on Tuesday morning at the Mountain Inn International Hotel.
Tsabedze emphasized the importance of transparency and public engagement regarding the proposed tariff hikes.
“The Eswatini Energy Regulatory Authority wishes to inform the public and electricity consumers that the Eswatini Electricity Company has filed an electricity tariff review application for the financial years 2025/26 and 2026/27,” he stated.
By the provisions outlined in Section 5 (1) (f) of the Energy Regulatory Act, along with Section 32 of the Electricity Act and Sections 5 and 6 of the Tariff Methodology, ESERA is tasked with conducting a thorough review of the tariff request.
This review process is initiated once the application is received, with a deadline set for November 1. The regulatory authority is expected to announce its decision by February 1 of the following year, allowing for a comprehensive three-month review period.
The rationale behind the proposed tariff increases is multifaceted. Tsabedze revealed that the EEC’s application will be the subject of a public outreach campaign scheduled from November 15 to December 7, 2024, in selected locations nationwide.
This initiative aims to educate consumers about the necessity of the proposed increases and to gather feedback from the community.
“Stakeholders, interested parties, and the public are hereby invited to review and comment on EEC’s tariff application through written submissions.
The application is also available on the ESERA website and social media pages,” Tsabedze urged, encouraging active participation in the regulatory process.
Written comments can be directed to info@esera.org.sz, ensuring that the voices of those affected by the impending changes are heard.
RELATED: Untangling Ecsponent’s E1.5 billion heist web
The implications of these proposed tariff increases could be significant for consumers, particularly at a time when many households are already grappling with rising costs of living.
A 25.51% increase in tariffs for 2025/26 and a further 27.06% for 2026/27 could strain household budgets and impact businesses reliant on consistent and affordable electricity.
The potential for increased electricity costs to contribute to inflationary pressures cannot be overlooked, as businesses may pass on their increased operational costs to consumers.
The upcoming outreach campaign will provide a platform for consumers to voice their concerns and seek clarification on the necessity of the proposed tariff hikes.
