Times Of Swaziland: ESERA set to announce electricity tariff decision today

ESERA set to announce electricity tariff decision today
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Nhlanganiso Mkhonta on 03/02/2025 09:26:00


MBABANE - After much discussion surrounding the proposed electricity hike, the
Eswatini Energy Regulatory Authority (ESERA) is set to announce its tariff
decision today.
The Eswatini Electricity Company (EEC) submitted an application to the regulator
last November, requesting an average tariff increase of 25.51 per cent for the
2025/26 financial year and 27.06 per cent for 2026/27.This proposed hike, if
approved, is expected to significantly reduce the purchasing power of
electricity units by 2026, placing additional financial strain on consumers. EEC
has justified its request by citing rising operational costs, increased
infrastructure investment need and the growing cost of importing electricity
from South Africa.
Hike
Eswatini sources a large portion of its power from Eskom and the Southern
African Power Pool (SAPP), where tariff review processes are also ongoing. If
South Africa approves an electricity price hike, Eswatini’s energy import
costs will rise, further necessitating local tariff adjustments.The power
utility has also pointed to the need for continuous maintenance and expansion of
the national grid. EEC argues that without a substantial tariff adjustment, it
will struggle to sustain reliable electricity supply, improve service delivery
and invest in renewable energy projects.
However, the proposed increases have been met with concern, as consumers and
businesses brace for the potential financial impact. Higher tariffs could lead
to increased costs of goods and services, affecting households already grappling
with inflation and economic challenges. Businesses, particularly in
energy-intensive industries, fear the hikes could drive up operational costs and
reduce profitability.
Submissions
ESERA’s decision today will determine whether EEC receives the full requested
increase, a reduced adjustment, or if the application is denied. The outcome
will set the tone for the country’s electricity pricing structure over the
next two years. During the submissions process, many people voiced their
opposition to the proposed increase, citing numerous reasons, including the
already high cost of electricity in the country.