WHERE EEC PROFITS GO

Sir,

EEC acknowledges the concerns raised by the public regarding our multi-year tariff application. We value these discussions and encourage customers to continue utilising the platforms provided during public hearings to express their views and seek clarifications. As a public company entrusted with delivering a critical service, EEC remains committed to transparency, accountability and collaboration with all stakeholders.

Financial management and transparency EEC operates within a regulated framework where financial decisions, including salary structures and operational expenses, are guided by the Public Enterprises Unit’s policies and approved by relevant authorities. The profits reported annually in previous years stem from efficient financial management of revenue streams and investments in infrastructure projects. These are reinvested to improve service delivery and expand access to electricity, particularly for underserved communities.

While it may seem contradictory to report profits while applying for a tariff increase, the reality is that operational losses in some areas, compounded by rising costs of imported power and infrastructure maintenance, necessitate periodic adjustments to sustain the reliability of our services. Detailed financial disclosures and independent audits are part of the regulatory process, ensuring accountability and clarity.

On salaries and operational costs

The assertion about inflated salaries deserves clarification. As a public entity, EEC adheres to the Public Enterprises Unit’s guidelines, offering competitive packages to attract and retain the specialised talent necessary in the energy sector. These salaries are benchmarked against industry standards, ensuring fairness and alignment with our operational needs. To address cost concerns, EEC has implemented strategies to reduce operational expenses, including optimising processes and improving efficiency across departments. These efforts align with our mission to balance financial sustainability with affordability for our customers.

Exploring renewable energy and local resources

The question of capitalising on local coal resources for electricity generation is a critical part of our long-term strategy. EEC continues to explore partnerships and investments in renewable and locally sourced energy to reduce dependence on imports and ensure sustainability. However, transitioning to such solutions requires significant investment, time, and alignment with Eswatini’s energy and environmental policies.

Path forward

The requested tariff adjustment is essential to address immediate challenges, such as rising costs of imported electricity and the need for infrastructure upgrades. However, EEC is equally focused on pursuing long-term solutions that minimise financial burdens on consumers. These include exploring innovative technologies, expanding local generation capacity, and enhancing operational efficiency.EEC is committed to ensuring operational excellence while prioritising customer satisfaction and affordability. We thank the public for their engagement and assure you that your voices are integral to shaping our policies and decisions.

Khaya Mavuso
Marketing and Corporate Communications Manager - EEC

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