EEC ANTICIPATES NEGATIVE RESPONSE TO TARIFF INCREASE

MBABANE – Eswatini Electricity Company is seemingly prepared to get a negative response to the applied tariff increase.

This is because the entity is treating the application as risk factor and is watching the application process with hawkish eye. “Emerging/Watch Risks - tariff award by the Regulator: Tariff (2023 to 2025) – Award of non-cost reflective tariff/lower than applied for,’ reads the organisations annual report for 2023. Other risks that the organisation is watching include overworked staff, a factor associated with high overtime. Others include fraud, negative stakeholder perception, environmental compliance risk (upcoming thermal plant).

The organisation also reported a to watch factor associated to high staff turnover and lack of critical skills, particularly the information technology and protection departments.
Another risk fact that the company is watching is the permanent interruption to power supply.

Critical

“In line with the requirements of the King IV report, the Audit and Risk Committee exercised its oversight role on IT Governance, wherein critical matters of IT Governance and information security, especially cybersecurity threats, the prevalence of which heightened after the COVID-19 period, were considered during quarterly meetings.” This newspaper, was however not privy to the mitigation plan to contain or avoid these risks. It has also been mentioned that EEC may introduce a block tariff for lifeline customers who are considered to be low-income consumers.  This will be done as the company recognises the impact of tariff increases on the economy and households, especially the small businesses and the indigent.

Lifeline

“This tariff proposal considers the adoption of  the subsidy framework by our legislators that includes an inclining block tariff for our lifeline customers who are considered to be low-income consumers,” reads the organisation’s proposal submitted to ESERA.

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