TUCOSWA: REVERSE WATER, ELECTRICITY TARIFFS HIKE

MBABANE – Workers, through the Trade Union Congress of Swaziland (TUCOSWA), say they want all tariff increments reversed.

These sentiments by the trade union, which has over 27 affiliates, is against the backdrop of politicians in Parliament approving the increment of water tariffs by four per cent. On October 30, 2024, the House of Assembly approved a 12 per cent water tariff hike that will be staggered in the next three years. The tariff hike that will be effected at four per cent every year was approved through the adoption of a report by the Ministry of Natural Resources and Energy House of Assembly Portfolio Committee.

This publication reported that the Members of parliament (MPs), who supported the hike, were convinced by the idea that the increment will fund Eswatini Water Services Corporation’s (EWSC) initiative to expand to rural areas. This has since been followed by the Eswatini Electricity Company (EEC) tendering an application seeking to hike electricity tariffs through its regulator – Eswatini Energy Regulatory Authority (ESERA) – on November 1, 2024. EEC requested for an average tariff increase of 25.51 and 27.06 per cent for 2025/26 and 2026/27, respectively. This hike proposed by the utility, if approved, will result in the value of electricity units depreciating significantly in the two financial years; forcing workers to dig deep into their pockets.

The increased water tariff, along with the proposed electricity tariff increase, if approved, will be implemented on April 1, 2024. In light of these developments, Secretary General (SG) of TUCOSWA Mduduzi Gina registered TUCOSWA’s opposition to the Parliament’s recent approval of the water tariff increase. He said TUCOSWA noted that EEC submitted to ESERA their application to also increase electricity tariffs for the years 2025 and 2026 in Eswatini.

Reality

Gina said: “The cumulative 12 per cent increase to the water tariff increases over the next three years, as well as the proposed 52 per cent cumulative proposed increase over two years (2025 and 2026) in the electricity tariff, if finally approved, will set workers and the poor’s standards of life back drastically. The reality is that workers and their families will be forced to pay these increased tariffs while their wages and other forms of income, including government grants, are stagnant.” Gina said in the case of the water tariff increase, media reports suggested that the application to increase the tariff was submitted and approved, despite EWSC making profits amounting to E354 million in the last four years.

These declared profits, he said, were being rubbed in the faces of the taxpaying consumers. The SG said EWSC is a company wholly-owned by the taxpayers, the majority and main contributors being workers. Gina said the profits that were realised in these public enterprises must be used to cushion the consumers against the economic hardships which may, in a private company, result in tariff increases. “We echo the voices of reason by some Members of Parliament, who cautioned the commercialisation of the natural resource, water and the EWSC in general.

Disappointingly

“The House disappointingly later unanimously voted to approve the tariff increase and in the process, confirmed an unfortunate reality that , parliamentarians are in a world of their own, they are out of touch with reality and removed from the plight of the majority of citizens,” Gina said. He said electricity and water are basic commodities and they must be available to all citizens without discrimination on social status. Gina said: “It is becoming apparent now, that these commodities are strategically being reserved for the rich. The increases would impact negatively on the socio-economic lives of our members and their families.”

The SG said the increase adds a heavy burden to the already high costs of other life essentials such as food, transport, clothing and housing, which also keep rising astronomically, while wages of workers remain embarrassingly low.Gina informed this publication that the remuneration awarded to workers through the wages councils and also through the cost-of-living adjustment (CoLA) in the civil service, were lower than the proposed electricity tariff hike. In this financial year, civil servants were awarded a four per cent CoLA, while the wages councils had varying increments for the various sectors whose salaries are negotiated through the councils.

This publication yesterday reported that for E100, consumers will now get only 32 units of electricity, that is if the 25.51 per cent tariff hike is approved on February 1, 2025. Currently, for the same amount, domestic users of electricity are getting 42 units for E100. The proposed increment is against the backdrop of an 8.02 per cent tariff hike, which was implemented on April 1, 2024. The 2023/24 financial year tariff increase saw a downward spiral in the value of units, as E100 was at the time equivalent to 47 units of electricity.

Domestic

However, following the tariff hike, the value of the electricity units at E100 became equivalent to 42 and with the proposed two-year multi-year price determination (MYPD), for domestic users, if the proposed tariff hikes are approved, the same money will buy 32 units in 2025/26 and then in 2026/27, it will give a mere 24 electricity units. Meanwhile, for lifeline tariff customers, the amounts of units bought with E100 are currently 72; however, with the proposed 25.51 per cent, they shall decrease to 53 and when the proposed 27.06 per cent increase, if approved, is implemented in 2026/27, they shall decline further to 39. The projected value of units is to be determined by the input of the public and the findings of the regulator.

This follows that as part of the process, ESERA will solicit input from the public and interested stakeholders, to incorporate into the review. “The public and all interested stakeholders are, therefore, invited to submit their comments on the application for review by December 14, 2024,” said the ESERA Chief Executive Officer (CEO), Sikhumbuzo Tsabedze.
Tsabedze said the authority will further hold public hearings to gather comments on the review. He said members of the public and various stakeholders are encouraged to attend the public hearings.

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