ELECTRICITY TARIFF TO GO UP BY 8.02%

MBABANE – Eswatini Electricity Company (EEC) will be effecting an average tariff increase of 8.02 per cent for the 2024/25 financial year.

Before the announced increase, E100 buys 47 units of electricity, after April 1, 2024, E100 will buy about 43 units. This follows an average tariff increase of 10.14 per cent, which was implemented in the 2023/24 financial year. The power utility company yesterday issued a press statement informing all customers that the effective date for the tariff adjustments for 2024/25 would be April 1, 2024. The price of electricity is regulated by the Eswatini Energy Regulatory Authority (ESERA), which evaluates applications by the EEC and consults the public, before endorsing any increase.

Unfortunate

Meanwhile, Mandla Ntshakala, the Chairperson of the Consumer Forum, said the electricity tariff increase was unfortunate, given the state of the economy. Ntshakala said the percentage increase was taxing to consumers, since their lives now revolved around the use of electricity. He then wondered whether government was doing something to control the situation.
“What is government saying about such a decision on tariff increase? It will affect emaSwati’s health,” said Ntshakala. He further said consumers were also of the view that government would start the construction of generation stations to ease the load and also increase the production of solar power. “Most basic commodities’ prices are controlled by the power price in the world market. Government must intervene in such a situation, by coming up with new strategies to control energy prices,” he lamented.

Affected

The chairperson predicted that Eswatini would be adversely affected by load-shedding very soon. On another note, Ntshakala raised concerns over the price of basic commodities, which he said had skyrocketed in the past 18 months. “Around 2022, the price of 10kg rice was less than E100, but it has now increased up to E150. Not only that, all food prices have doubled,” he said. He also said: “We are also faced with another challenge of the non-regulation of LPG Gas prices, which are always increasing. We requested the Eswatini Energy Regulatory Authority to formulate a system that would regulate the pricing.” Meanwhile, economist Thembinkosi Dube lamented the tariff increase, saying ECC’s decision continued to reduce emaSwati’s disposable income.

Concern

He said that was a serious concern, due to the fact that it would affect people’s ability to earn a living. “We are likely to see manufacturers increasing their prices to the final product as one way of covering their costs. In short, inflation will start rising,” said Dube. Dube, however, said it was unfortunate that such adjustments had been approved. As a solution to the increase in electricity tariffs, Dube said Eswatini must start generating its own power.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: