14.67% ELECTRICITY HIKE SHOCKS MINISTER, OTHERS

MBABANE – Umhlolo! The Minister of Natural Resources and Energy, Prince Lonkhokhela, expressed shock and concern regarding the electricity tariff hike granted by the Eswatini Regulatory Authority (ESERA) yesterday. The minister joins other stakeholders, including the Eswatini Consumers’ Forum and the Trade Union Congress of Swaziland (TUCOSWA), in expressing disbelief. The regulatory authority announced a tariff hike averaging 14.67 per cent for 2025 and 10.91 per cent for 2026 for domestic customers, following an electricity tariff proposal submitted by the Eswatini Electricity Company (EEC) last November.

The approved tariff increases will take effect on April 1 of each respective year.  This means that starting in April, domestic customers spending E100 on electricity will receive 38 units, and from April 2026, they will receive 33 units. Commercial customers (excluding the facility charge) will receive 32 units this year and 28 units next year. “The approved revenue recovery translates to an average tariff increase of 14.67 per cent for the 2025/26 financial year and an average tariff increase of 10.91 per cent for the 2026/27 financial year,” stated ESERA CEO Sikhumbuzo Tsabedze yesterday at the Mountain View International Hotel in Mbabane.

“The domestic tariff will increase by 14.12 per cent, while energy charges for corporate time-of-use and non-time-of-use customers will increase by 14 per cent in each of the two financial years. Demand charges will increase by 14 per cent while time-of-use and non-time-of-use facility charges and access charges will increase by the approved inflation rate of 5.02 per cent (FY2025/26) and 4.86 per cent (FY2026/27).” “The lifeline tariff increase has been limited to 7.35 per cent in consideration of the vulnerability of this tariff category to adverse socio-economic conditions. “The tariff adjustment for 2025/26 will become effective on April 1, 2025, and the adjustment for 2026/27 will become effective on April 1, 2026,” Tsabedze continued.

Effective

The CEO, who was accompanied by his senior officers and joined by EEC Managing Director Ernest Mkhonta during the announcement, added that the facility charge for small businesses will increase from E189 to E198 in 2025 and E208 in 2026. Tsabedze emphasised that before reaching a decision, the regulatory authority considered stakeholder comments and input submitted during extensive engagements and public hearings held around the country. “The authority also received a significant number of written submissions that added considerable value to the review, detailed technical and economic analysis,” he added.

“Power import escalation rates, particularly the NERSA-approved Eskom tariff increase of 12.74 per cent in FY2025/26 and 5.36 per cent in FY2026/27, plus the additional percentage per Power Purchase Agreement (PPA) between EEC and Eskom, were all considered.” The law stipulates that the tariff hike should be announced on or before February 1.  Explaining the delay until the third, Tsabedze said it was because they had to base their decision on the Eskom tariff increase, as EEC’s application heavily relied on it.

Following the regulatory authority’s announcement, Minister Prince Lonkhokhela said he met with the ESERA team, led by the CEO, on Sunday to discuss the granted tariff hike for EEC. He said the CEO explained the rationale behind the granted average tariff increases of 14.67 per cent this year and 10.91 per cent in 2026. “He explained how they arrived at the figures, ngekhuta ke umhlolo nami ngamangala kutsi hawu imali lengaka, lesive senkhosi (I was taken aback by the granted percentage and questioned how the nation will survive),” he said.

Unstable

The prince noted that people are still recovering from the economic shocks of COVID-19, and the global economy remains unstable. He emphasised that electricity is essential for development, both for businesses and individuals. However, he lauded ESERA for considering public views, noting the difference between the requested and granted tariff hikes. EEC had requested a 25 per cent increase in 2025 and a 27 per cent increase in 2026. In its initial proposal, EEC requested a revenue requirement of E4 219 416 214 for the 2025/26 financial year and E4 570 140 772 for the 2026/27 financial year. This translated to an average tariff increase of 25.51 per cent for the 2025/26 financial year and 27.06 per cent for the 2026/27 financial year, excluding Rural Electrification Access Fund levy and VAT.

The regulator, however, approved a revenue requirement of E3 462 691 721 for 2025/26 and E3 683 036 332 for 2026/27. “I am concerned about the rate, as I serve the interests of the government and the nation in energy issues,” the minister stated. The prince added that after learning about the granted tariff hike, he was hopeful that the Cabinet meeting today would provide the opportunity to address the issue. He said he was prepared to present the plight of emaSwati to Cabinet and urge them to consider reducing the increase granted to EEC.
He said he was ready to present various scenarios that could be employed to reduce the proposed hike. If Cabinet agrees with his proposals, he would then make an announcement to the nation.

He noted that government is a major shareholder in EEC, responsible for the economy and the nation at large. With government representing the interests of these groups, the prince said it should act as a balancing factor in this regard. “We will be scrutinising the decision against the interests and affordability of emaSwati,” he said. The minister appreciated ESERA’s methodology in granting the increase, but emphasised the crucial need to scrutinise the timing and the rate of the tariff to determine if it is in the best interests of emaSwati. He said it was inevitable that EEC would be affected by regional developments, as Eswatini imports most of its electricity, creating gaps that need to be addressed. “The rate is too much,” he said.

Economy

“In past years, there have been increases. I am worried about the economy, especially after the King spoke in Parliament. His Majesty emphasised service delivery and ensuring gross domestic product growth. How will that be possible if there is no power, or we cannot afford electricity? The economy is starting to pick up, but such increases in power, which is crucial for production, will affect economic growth. If the economy performs badly, who are we supposed to blame - government? I am going to plead with the Cabinet to help the nation, or me, on what I should say to the nation.”

The minister also drew attention to the facility charge levied on businesses. Last year, schools raised concerns about the increased facility charge. He noted that schools are among the entities that pay facility charges and said he would also address that issue with the Cabinet, looking at possible ways to address it through a review of the law and EEC in the meantime. In 2023, Eswatini’s electricity tariff saw an increase of 10.14 per cent for the financial year 2023/24, followed by an additional 8.02 per cent increase for the 2024/25 financial year, as approved by the ESERA.

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