ELECTRICITY CONNECTION CHARGE TO BE REVIEWED

MBABANE - The Eswatini Energy Regulatory Authority (ESERA) has embarked on a process of developing some connection charge guidelines for load customers.

The process has been going on for a year and ESERA has produced a draft document which has culminated in the issuance of a request for proposals to review draft end-user connection charge guidelines for the Eswatini Electricity Supply Industry (ESI). 

The study could be undertaken on behalf of the ESERA by a consultant, who will be responsible for analysing the technical parameters defined for the application of the guidelines and comment on their clarity, appropriateness, and applicability.

The consultant will be expected to analyse the economic parameters defined in the guidelines for their practicality, equity and transparency. It will also be identifying likely constraints on the applicability of the guidelines and suggest possible solutions to manueuvre over them.

Completing

Soon after completing the assignment, the consultant will be expected to update the connection charge guidelines document accordingly and also develop operational rules and a funding model for a liquidity account.
This is defined as a ring-fenced fund that will be made accessible to the utility to use when installing new connection while awaiting full payment from the new customers.

To make new connection more affordable, new customers may have to pay a deposit amount and later pay the balance of the connection amount in instalments alongside their monthly replenishing of units).

Stated

Further, it was stated that it was expected that the review of the draft connection charge guidelines would, among other things, deliver a connection charge guideline document, a report on connection charge practices, operational rules, procedures and funding strategy for a liquidity account.

Currently, connection charge for new customers who want to connect to the grid is calculated based on a quotation approach, where all equipment that will be required to connect the customer to the nearest connection point are quoted and paid for in full by the new customer before any connection exercise is done.

Eswatini Energy Regulatory Authority (ESERA) is a statutory energy regulatory body established through the Energy Regulatory Act, 2007 (Act no.2 of 2007).
The mandate of ESERA is the Administration of Electricity Act, 2007 (act no.3 of 2007), with the primary and core responsibilities of exercising control over the electricity supply industry (ESI) and ensuring the security of supply of electricity through the issuance of licences and the regulation of electricity tariffs and quality of supply and services.

Focused

Since inception, ESERA has, among other things, focused on developing regulatory procedures and systems to facilitate the regulation of the electricity sector in line with its legal mandate and institutional mission.

The authority strives to become the most effective energy regulator in Southern Africa by promoting a viable and sustainable energy industry in Eswatini through efficient and effective regulation.

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