ELECTRICITY TARIFF HIKE STOPPED

MBABANE – The proposed electricity tariff hike has been stopped. This announcement which could be described as good news to consumers, was made by the Prime Minister Ambrose Mandvulo Dlamini, yesterday.

The proposed hike was supposed to be effective tomorrow.
Speaking during his weekly COVID-19 update briefing at Cabinet, Dlamini announced that the hike  discontinuation was done to cushion emaSwati during these challenging economic times.

“The power utility shall re-apply for an increment next year (2021) in terms of the governing laws. Government extends its appreciation to Eswatini Electricity Company (EEC) for having consented to this government measure,” he said.
Earlier the premier had recounted that on March 31, 2020, government announced that the implementation of the approved electricity tariff increase for the year 2020/21 was deferred for a period of two months commencing from the April 1, 2020 and ending on May 31, 2020.

Deferred

Furthermore, the premier announced that the water tariff increase that had been  deferred for a period of two months ending  May 31, 2020 would be again deferred for an additional month from  June 1, 2020 to June 30, 2020.

“We also extend our appreciation to the Eswatini Water Services Corporation for this extension,” he said.
Dlamini then advised members of the public that despite the easing of the partial lockdown, it was important to fully comply with the COVID-19 regulations.

“There is still no need for unnecessary travel as that increases the chances of spreading the virus. We have to remain vigilant and not allow complacency to creep in if we are to continue to save lives,” he said.

Crucial

Also, he said it was crucial to reiterate that all the  processes of easing partial lockdown measures would only be sustained if they do not set us on a path of increased COVID-19 infections.
Reacting to the deferment and discontinuation announcement, Eswatini Consumer Association Chairman Bongani Bhanyaza Mdluli, described it as good news.

“That’s good news. We welcome this deferment. We think government took into consideration the country’s economic status,” he said.
Mdluli said the implementation would have worsened the situation faced by consumers.
In fact, Mdluli said people had no means to pay for their electricity because of the COVID-19 regulations, which called for them to stay at home.

Generate

“Most people could not generate income because some of their businesses had been closed,” he added.
Also, Mdluli said the deferment would give consumers a chance to breathe during these difficult times. 
Around February this year, the regulator, ESERA approved the request by EEC for a tariff increment.

The average increments approved by ESERA were 1.03 per cent and 1.05 per cent, respectively.
In essence, this means that from the 6.2 per cent tariff hike EEC had requested for domestic users, it was allowed to increase the tariff by a minimum of 1.03 per cent.

If the utility is to implement the minimum permitted by ESERA, a domestic user shall pay E1.77 per unit.

Implements

This is equivalent to a two cents increment. If EEC implements the minimum, the consumer shall get 56.6 units for E100. This is equivalent to losing half a unit as for the same amount, households currently get 57.2 units.
However, if EEC implements the maximum percentage in the upcoming financial year, which is 3.53 per cent, (1.03 per cent+2.5 per cent), each unit shall cost E1.81.

Using the tentative estimate of the maximum increment, the consumer will get 55.3 kilowatts per hour (kWh) for E100, which is a decline of 1.9kWh.

EEC’s application sent to ESERA in November 1, 2019, was for an average tariff increase of 5.70 per cent for each of the next two financial years 2020/21 and 2021/22.

Hike

On Tuesday, Members of Parliament (MPs) called for a deferment of the tariff hike.
Most said it was public knowledge that the country was in an economic quagmire due to the coronavirus outbreak.
They felt that individuals and companies would negatively be affected by the increase.

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