MBABANE (3 FEBRUARY 2025): The cost of electricity has shot up by 14.1% with effect from 1 April 2025. The increase was announced today by the Eswatini Energy Regulatory Authority (ESERA) following a nationwide public consultation on the request by the Eswatini Electricity Company (EEC) for a new electricity tariff rate.
The new tariff means households that currently buy 43 units for E100.00 will now get only 38 units for E100 with effective from 1 April 2025 this year. The two-year tariff review will see consumers paying even more for electricity next year. From April 2026, E100 will buy only 33 units.
The cost increase for commercial users will mean E100 which until now buys 36 units reducing to 38 units from April 2025, and further reduce to 28 units from April 2026. The new tariff increases the facility charges that EEC levies commercial customers whether any electricity is used or not from E189 to E198.81 effective 1 April 2025 and to E208 for the years 2026/27.
The new tariff is however just over half what was requested by the electricity generator, Eswatini Electricity Company (EEC) which cited mainly the higher cost in the cost of imported electricity.
Domestic electricity generation from hydro power stations, solar and now biomass thermal generators now accounts for about 20% the country’s needs. Almost 80% of electricity is thermal power generated by South African coal-fired generators then imported from ESKOM. ESKOM also sometimes augments its supplies with infusions from the Southern Africa Power Pool, supplied mostly by even more expensive gas fired generators from Mozambique.
Meanwhile, the South Africa National Energy Regulatory Authority (NERSA) cut deep into ESKOM’S application for a 36% tariff increase on 1 April, 11.81% in the next year and 9.1% in 2027/28 that had domestic and commercial consumers up in arms.
It announced last Thursday that Eskom, which supplies EEC and is the main basis for the increased tariff rate, will only be allowed to implement increases of 12.7%, 5.36% and 6.19% in each of the next financial years.
Announcing the new EEC tariff rate award in Mbabane today, ESERA CEO Sikhumbuzo Tsabedze noted that the tariff rate increase comes in the background of a strong public sentiment that is opposed to the high cost of electricity that they said is already unaffordable, urging increased domestic power generation to cut the cost of electricity imports.
The cost increase will also affect the very poor. The regulator has a special rate for lifeline users who are mostly the elderly and indigent who currently buy 72 units for E100. For them, the cost increase means E100 will now buy 67 units in 2025/26 which will reduce to 62 units in 2026/27.
The new tariff will now be submitted to cabinet for approval.
Jm/today/3.2.2025
