STOP 10.8% ELECTRICITY HIKE - SWACOF; ESERA SAYS NO

MBABANE – The Swaziland Consumer Forum (SWACOF) is calling for the reversal of the 10.8 per cent electricity hike.

SWACOF Chairman Mandla Ntshakala said the timing to effect the hike was not favourable due to many reasons.
Ntshakala urged the Eswatini Energy Regulatory Authourity (ESERA) to consider the consumers in their decision to approve the electricity hike, which is expected to come into effect on April 1, 2023. ESERA is the regulator for the electricity industry and recently approved the 10.8 per cent hike, following a request of over 20 per cent by the Eswatini Electricity Company (EEC). According to Ntshakala, ESERA workers were also consumers of electricity, hence the forum’s request for a halt of the hike, especially in consideration of the current financial situation in the country. He said the hike should be halted until the financial situation improved.

Reasons

Ntshakala said having considered the reasons for the hike, they came to the conclusion that the Eswatini Electricity Company (EEC) could be able to stop the increase for a certain period. He said looking at the company’s (EEC) profit margin, it was still healthy compared to the poor working class, who were the consumers.

The chairman said ESERA should consider that the 10.8 per cent hike be stopped immediately. He said hiking electricity was similar to an increase in fuel prices, which influenced prices for other commodities, including food.
Ntshakala stated that EEC forwarded a request to be granted the tariff increase, while consumers on the other hand had never made a request for the reduction of same. “This is why as consumers we have decided to peacefully visit ESERA to forward a request for the reduction of the tariffs,” he said. Consumer forum member Mphandlana Shongwe said as consumers, they had registered their concerns during the public hearings but they were not regarded. Shongwe said it was painful that a decision to effect the hike was made and would come into effect.

Disregarding

He wondered why ESERA made a joke of the members of the public by disregarding their concerns, which were made in black and white that they were against the tariff hike. Shongwe said the hike should stop until such a time where salaries were reviewed and the economy had improved. Another member, Themba Mabuza, said they were not cry-babies but the issue of the electricity hike really cut deep. He added that the decision by ESERA to hike the tariff would lead to a situation whereby the installation of electricity would be useless as people would not afford it.
He said it did not benefit anyone if EEC would brag about profits at the expense of the poor people.

In response, ESERA Chief Executive Officer (CEO) Sikhumbuzo Tsabedze said they were not able to reverse the decision to increase the tariff hike. Tsabedze said they reached the decision and stated the reasons, of which they were of the view that they considered members of the public when reaching the resolution. He mentioned that the law gave them powers to take decisions as a regulator. Furthermore, he said they welcomed the concerns by the consumer forum, which was also made with respect and was equally important.

He said as the regulator, they had what was known as a quasi judiciary authority, meaning they were given specific authority, which they needed to apply guardedly. Tsabedze said the issue of electricity was complicated, especially because it was imported from a foreign country. He said they acknowledged the fact that they went to the communities during the public hearings and listened to the concerns that were raised. As a regulator, he said they recorded reports from individuals and the responses. The CEO said ECC had forwarded a request for 21.31 per cent average, with 26 per cent for domestic tariffs and explained the reasons on the need for the tariff increase.

Increase

He stated that the tarrif price increase at Eskom was over 18 per cent. Tsabedze said such made it very difficult for them as the regulator when considering concerns from consumers and weighing in the need for the request for a hike by EEC. “You end up being an enemy to everyone as the consumer thinks they were disregarded and EEC as well (is of the same view),” he added. Tsabedze said their hands were clean considering the rationale on how they had reached the decision to grant the tariff hike.

Following the public hearings, Tsabedze said they made a promise to go back and give feedback to the people about how the decision was reached. He said they would be going back to give the feedback next month. Tsabedze said the feedback was already uploaded on their web page but they would also engage with the public as it was their responsibility to do, in particular because other consumers had no access to the internet.

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