Times Of Swaziland: NO TO PROPOSED 25% ELECTRICITY HIKE - PM

NO TO PROPOSED 25% ELECTRICITY HIKE - PM
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Sabelo Majola on 08/11/2024 09:34:00


LOBAMBA – No ways!
Prime Minister Russell Dlamini has opposed the 25.51 per cent proposed
electricity tariff hike which, if approved, will be effective from February 1,
2025. The PM made his stance known on the matter yesterday in Parliament during
his office’s portfolio committee debate of the second quarter performance
report. The PM’s stance on the issue was met with cheers from the Members of
Parliament (MPs) who had expressed great concern on the tariffs imposed on
emaSwati at a time when the economy was crumbling. Eswatini Electricity Company
(EEC) requested an average tariff increase of 25.51 and 27.06 per cent for
2025/26 and 2026/27 respectively.
The PM stated that the proposed hike will not be given a green light in the
sense that it is not justified, given that it is above the inflation rate. He
advised MPs to encourage emaSwati to make use of the platforms presented to them
prior to the implementation of the tariffs, and question the regulator on what
informed the hike against the high inflation rate.“The 25 per cent proposed
hike is too high and it will not make economic sense to impose it on emaSwati.
It is not justified. I can confidently say that the proposed hike is too high
and we will not approve it,” he said.
Dlamini said they encouraged that the MPs should encourage the people to attend
meetings called by the relevant and official structures and ask the hard
questions. The PM highlighted that this was still at proposal stage and it was
through these meetings that emaSwati should put it to the regulator that for the
past three years, they had consistently increased the tariffs for the past three
years, more than the inflation.  “They should demand answers from the relevant
structures to say where has the profits been utilised at, how have they been
spent exactly because you are now imposing tariffs more than the inflation. The
structures should be able to give answers to all these questions as they engage
with the populace,” he said.
Lobamba MP Michael Masilela was among the MPs who raised the issue of the
tariffs to the PM, prior to his stance on the matter. He said he was uneasy
about the four per cent water tariffs that to be implemented in the next three
years. The House of Assembly recently gave an approval stamp to the water
tariffs, which Masilela expressed grief on.He said his other pain was the 25.51
per cent proposed electricity tariff hike by EEC, appealing to the PM that it
should not happen in his tenure that these tariffs be imposed on emaSwati.
“Life is difficult for everybody out there. The economy is crumbling and
nobody is having it easy. The sad part is that these entities are declaring
multiple millions in profits but at the same time they want tariff hikes. It is
very painful,” he said.Mafutseni MP Sabelo Mtetwa suggested that government
should invest in EEC in attaining self-sustainability as far as electricity is
concerned so that the country could have control of the tariffs.He said that
relying on investors to assist in attaining self-sustainability was not ideal in
the sense that they were also looking to make profit out of their investments,
thus the country could be compelled to approve high tariffs even if the economic
situation does not permit.
“What we do today will affect future generations and it will be wise to make
long term decisions that will see them not attending to the same challenges we
are facing now. Government should invest into EEC and to ensure that we are not
sourcing electricity and we have control of the tariffs,” he said.This
publication reported that the proposed increment is against a backdrop of an
8.02 per cent tariff hike, which was implemented on April 1, 2024. The 2023/24
financial year tariff increase saw a downward spiral in the value of units, as
E100 was at the time equivalent to 42 units of electricity.
However, following the tariff hike, the value of the electricity units at E100
became equivalent to 42 and with the proposed two-year multi-year price
determination (MYPD), for domestic users, if the proposed tariff hikes are
approved, the same amount will buy 32 units in 2025/26 and then in 2026/27, it
will be a mere 24 electricity units.Meanwhile, the PM, in his preamble, shared
that in line with their mandate of coordinating, reviewing and analysing public
policies, the Policy Programming and Coordination Unit (PPCU) held several
engagements with various policy players.
He said the unit also drafted the Programme of Action 2023/24 – 2027/28 and
the Government Policy Statement.“Further, the PPCU reviewed 305 external
travel requests, 30 of which were for Ministers. Savings of E358 261 were
realised during the period under review,” he said.
Tariffs should align with socio-economic status – gvt
LOBAMBA – Government, through its Spokesperson Alpheus Nxumalo, is aligning
with the stance taken by the prime minister, as far as the electricity hike is
concerned.
In a statement shared with the media, Nxumalo stated that government notes the
public concerns regarding the recently approved water tariff increase as well as
the proposed electricity tariff hike by the Eswatini Energy Regulatory Authority
(ESERA). He mentioned that government regards these concerns as genuine and
warranted, as they affect the livelihoods of emaSwati, particularly as the globe
continues to grapple with major economic challenges that largely affect
developing nations like Eswatini and citizens in particular.
He said that government is aware that utility hikes are necessitated by various
factors, all aimed at ensuring sustained water and electricity security in the
country, and which will benefit emaSwati for future generations to come.Even so,
Nxumalo revealed that these should align with the prevailing socio-economic
status of the country, taking into consideration the buying power of
citizens.“On that note, government wishes to assure the nation that we will
scrutinise the electricity hike proposal with a view to ensure that the outcome
favours emaSwati and that the nation is protected in the process.
“In the meantime, we urge emaSwati to remain calm and to also participate in
the call to make submissions on the matter to ESERA so that their views may be
heard and considered,” he said through the statement.It should be mentioned
that clarity was sought from the Deputy Speaker of the House of Assembly Madala
Mhlanga on whether the water tariff hike, which has already been approved by
government, could be reversed given the outcry that is also noted by government,
to which Mhlanga said no.
“The process of the water tariffs has been exhausted and the executive has no
powers to rescind Parliament resolution. I think the PM was addressing the issue
of the proposed electricity tariffs hike which is being handled by ESERA. Once
tariffs pass through Parliament, they cannot be overturned,” he said.