EWSC undertakes tariff review assessment, 5-year business plan
By Kwanele Dhladhla
The Eswatini Water Services Corporation (EWSC) has embarked on a strategic initiative to develop a comprehensive five-year business plan to guide its operational and capital investment decisions.
Concurrently, a tariff review assessment is required to evaluate the implications of the business plan on existing tariff structures and the new tariff structure to be proposed, with a specific focus on accommodating the utility’s expanded mandate for rural water supply and ensuring the development of a sustainable social tariff.
In the Expression of Interest (EOI), which has been published by the Eswatini Public Procurement Regulatory Agency (ESPPRA), it was explained that this exercise aims to optimise capex spend, prioritise projects aligned with the corporate strategy, and establish a tariff structure and methodology that supports equitable and sustainable service delivery across urban and rural areas.
It has been mentioned that the corporation led by Jabulile Mashwama as Managing Director (MD) currently maintains a total of 77, 265 active customer accounts.
These customers were segmented into four primary categories: government, corporate, commercial, and residential.
Government accounts, which include ministries and other government-owned entities, are 2,185.
Corporate customers, defined as private sector companies with more than 10 accounts across various regions, amount to 3, 557.
Commercial accounts, comprising small and medium-sized enterprises (SMEs) and small-scale businesses (4, 029).
It was stated that the largest category is the residential segment, consisting of individual household accounts, which currently stands at 67, 494.
The corporation’s total revenue was projected at E590 million.
Residential customers contribute approximately 37 percent of this total, while government customers account for 29 percent.
Corporate customers contribute 18 percent, and commercial customers make up the remaining 16 percent.
It was stated that monthly, the corporation issues bills totaling approximately E48 million, with revenue distribution broadly aligning with the aforementioned percentages across each customer segment.
As of year ended 31 March 2025, the corporation’s total outstanding debt stood at E272 million, representing a decrease of E13 million or five percent when compared to the figure of E284 million recorded on 31 March 2024.
The collections ratio at the end of March 2025 was 109 percent against a target of 115 percent.
This represents a significant improvement when compared to the prior year’s collections ratio of 97 percent.
However, debtor days remained high at 172 days, although this reflects progress compared to the 187 days recorded in March 2024.
“The target remains at 70 days. By customer category, the government segment held E75 million in outstanding debt. Corporate debt stood at E18 million, while commercial customers owed E23 million. The residential category remains the largest contributor to outstanding debt, with a balance of E155 million,” it was added.