Times Of Swaziland: ELECTRICITY TARIFF TO GO UP BY 8.02%

ELECTRICITY TARIFF TO GO UP BY 8.02%
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Mthunzi Mdluli on 06/03/2024 08:36:00


MBABANE – Eswatini Electricity Company (EEC) will be effecting an average
tariff increase of 8.02 per cent for the 2024/25 financial year.
Before the announced increase, E100 buys 47 units of electricity, after April 1,
2024, E100 will buy about 43 units. This follows an average tariff increase of
10.14 per cent, which was implemented in the 2023/24 financial year. The power
utility company yesterday issued a press statement informing all customers that
the effective date for the tariff adjustments for 2024/25 would be April 1,
2024. The price of electricity is regulated by the Eswatini Energy Regulatory
Authority (ESERA), which evaluates applications by the EEC and consults the
public, before endorsing any increase.
Unfortunate
Meanwhile, Mandla Ntshakala, the Chairperson of the Consumer Forum, said the
electricity tariff increase was unfortunate, given the state of the economy.
Ntshakala said the percentage increase was taxing to consumers, since their
lives now revolved around the use of electricity. He then wondered whether
government was doing something to control the situation.
“What is government saying about such a decision on tariff increase? It will
affect emaSwati’s health,” said Ntshakala. He further said consumers were
also of the view that government would start the construction of generation
stations to ease the load and also increase the production of solar power.
“Most basic commodities’ prices are controlled by the power price in the
world market. Government must intervene in such a situation, by coming up with
new strategies to control energy prices,” he lamented.
Affected
The chairperson predicted that Eswatini would be adversely affected by
load-shedding very soon. On another note, Ntshakala raised concerns over the
price of basic commodities, which he said had skyrocketed in the past 18 months.
“Around 2022, the price of 10kg rice was less than E100, but it has now
increased up to E150. Not only that, all food prices have doubled,” he said.
He also said: “We are also faced with another challenge of the non-regulation
of LPG Gas prices, which are always increasing. We requested the Eswatini Energy
Regulatory Authority to formulate a system that would regulate the pricing.”
Meanwhile, economist Thembinkosi Dube lamented the tariff increase, saying
ECC’s decision continued to reduce emaSwati’s disposable income.
Concern
He said that was a serious concern, due to the fact that it would affect
people’s ability to earn a living. “We are likely to see manufacturers
increasing their prices to the final product as one way of covering their costs.
In short, inflation will start rising,” said Dube. Dube, however, said it was
unfortunate that such adjustments had been approved. As a solution to the
increase in electricity tariffs, Dube said Eswatini must start generating its
own power.