Times Of Swaziland: EEC ANTICIPATES NEGATIVE RESPONSE TO TARIFF INCREASE

EEC ANTICIPATES NEGATIVE RESPONSE TO TARIFF INCREASE
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Mduduzi Magagula on 10/11/2024 09:22:00


MBABANE – Eswatini Electricity Company is seemingly prepared to get a negative
response to the applied tariff increase.
This is because the entity is treating the application as risk factor and is
watching the application process with hawkish eye. “Emerging/Watch Risks -
tariff award by the Regulator: Tariff (2023 to 2025) – Award of non-cost
reflective tariff/lower than applied for,’ reads the organisations annual
report for 2023. Other risks that the organisation is watching include
overworked staff, a factor associated with high overtime. Others include fraud,
negative stakeholder perception, environmental compliance risk (upcoming thermal
plant).
The organisation also reported a to watch factor associated to high staff
turnover and lack of critical skills, particularly the information technology
and protection departments.
Another risk fact that the company is watching is the permanent interruption to
power supply.
Critical
“In line with the requirements of the King IV report, the Audit and Risk
Committee exercised its oversight role on IT Governance, wherein critical
matters of IT Governance and information security, especially cybersecurity
threats, the prevalence of which heightened after the COVID-19 period, were
considered during quarterly meetings.” This newspaper, was however not privy
to the mitigation plan to contain or avoid these risks. It has also been
mentioned that EEC may introduce a block tariff for lifeline customers who are
considered to be low-income consumers.  This will be done as the company
recognises the impact of tariff increases on the economy and households,
especially the small businesses and the indigent.
Lifeline
“This tariff proposal considers the adoption of  the subsidy framework by our
legislators that includes an inclining block tariff for our lifeline customers
who are considered to be low-income consumers,” reads the organisation’s
proposal submitted to ESERA.