ESERA set to announce electricity tariff decision today

MBABANE - After much discussion surrounding the proposed electricity hike, the Eswatini Energy Regulatory Authority (ESERA) is set to announce its tariff decision today.  
The Eswatini Electricity Company (EEC) submitted an application to the regulator last November, requesting an average tariff increase of 25.51 per cent for the 2025/26 financial year and 27.06 per cent for 2026/27.This proposed hike, if approved, is expected to significantly reduce the purchasing power of electricity units by 2026, placing additional financial strain on consumers. EEC has justified its request by citing rising operational costs, increased infrastructure investment need and the growing cost of importing electricity from South Africa.

Hike

Eswatini sources a large portion of its power from Eskom and the Southern African Power Pool (SAPP), where tariff review processes are also ongoing. If South Africa approves an electricity price hike, Eswatini’s energy import costs will rise, further necessitating local tariff adjustments.The power utility has also pointed to the need for continuous maintenance and expansion of the national grid. EEC argues that without a substantial tariff adjustment, it will struggle to sustain reliable electricity supply, improve service delivery and invest in renewable energy projects.

However, the proposed increases have been met with concern, as consumers and businesses brace for the potential financial impact. Higher tariffs could lead to increased costs of goods and services, affecting households already grappling with inflation and economic challenges. Businesses, particularly in energy-intensive industries, fear the hikes could drive up operational costs and reduce profitability.

Submissions

ESERA’s decision today will determine whether EEC receives the full requested increase, a reduced adjustment, or if the application is denied. The outcome will set the tone for the country’s electricity pricing structure over the next two years. During the submissions process, many people voiced their opposition to the proposed increase, citing numerous reasons, including the already high cost of electricity in the country.

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