MBABANE: The Eswatini Electricity Company (EEC) has lodged an application with the energy regulator, requesting to increase the price of electricity by an average 26.2% during the 2026/26 and 2026/27 financial years, the energy regulator has just announced.
EEC seeks a revenue income of E4.2 billion in 2025/26 and E4.6 billion in 2026/27.
If approved, the price of a unit of electricity will jump significantly. Currently, E100 buys 43 units. This would reduce to 32 units for E100 from February 2025 and decline further to 24 units for E100 from February 2027.
Announcing the application this morning, Eswatini Energy Regulatory Authority (ESERA) CEO Mr. Sikhumbuzo Tsabedze said before the tariff application is approved, it must be subjected to a broad stakeholder consultation that will include electricity consumers, workers’ organizations, the business community as well as government.
The first in the series of nationwide consultations begins in 10 days, at the George Hotel in Manzini on the 15th November and the last on the 7th December 2024 at Caritas in Manzini.
The consultations are a statutory requirement to elicit public views that will support the energy regulator during its technical scrutiny of the tariff increase. The regulator’s evaluation that will decide how much of the price increase request is approved, will include an assessment of projected economic factors underlying price increases in the next two years. The regulator is also required to look into the electricity company’s own management efficiencies to ensure that the increase is justified.
“We as the Eswatini Regulatory Authority wish to inform the public and the electricity consumer that the Eswatini Electricity Company has filed a tariff review application for the two coming financial years 2025/26 and 2026/27. This request is for a revenue requirement of E4 billion 219 million 416 thousand revenue request for the financial year 2025/2026 representing an average tariff increase of 25,51% and the revenue request of E4 billion 570 million 772 thousand for the financial year 2026/2027, representing an average of 27.06% tariff increase.”
The law gives the regulator 3 months to review the price increase request and award what it considers fair by the 1st February 2025. The review includes a four-weeks’ window for public consultations from 14 November to 14 December.
“In terms of Section 51(f) of the energy regulatory authority act read together with Section 32 of the electricity act and with section 5 and 6 of the tariff methodology, the energy regulator is mandated to undertake a review once the request is received (from the electricity company) by the 1st November. The authority is expected to announce its decision not later than 1 February the following year”, Mr. Tsabedze said.
The full tariff review application is posted on the regulator’s website https://www.esera.org.sz/media/publications/docs/Tariff%2020252026%20and%2020262027%20Application%20Write%20Up%20Final.pdf
Eswatini is a price taker with limited control over the cost of electricity because it imports over 70% of electricity from South Africa and Mozambique.
The EEC tariff increase application assumes that it will buy electricity from ESKOM’s NTCSA (National Transmission Company of South Africa) whose own tariff is expected to increase by 20% for the financial year 2025/26 and 15% in 2026/27.
EEC plans to reduce ESKOM purchases from 174MW to 160MW for the 2025/26 and 2026/27 and increase purchases from Mozambique’s EDM. Eskom however remains Eswatini’s key power, contributing 71% of projected total power imports in 2025/26 and 69% in 2026/27.
EEC’s own power generation remains low. During the rainy season it is able to augment imports with increased generation from its hydroelectric power stations at Dwaleni, south of Manzini; Luphohlo in Mbabane and Maguga, south of Pigg’s Peak. Solar generation at Lavumisa recently came on stream but used mostly during off-peak periods.
Domestic generation is also increasing due to a contribution by biomass generators by the country’s sugar factories.
The country has however embarked on an energy masterplan that envisages increased domestic power generation from solar, biomass and wind generators. It is increasingly relying on biomass power generators from the sugar manufacturers at Ubombo Sugar in Big Bend and Royal Eswatini Sugar at Mhlume and Simunye to shoulder the bulk of required baseload to sustain the country even during low water level periods when hydropower generation is weak.
Jm/today/5.11.2024
