MBABANE – The Electricity Supply Industry (ESI) in Eswatini is undergoing transformation due to legislative and policy reforms, as well as technological developments.
These changes are anticipated to result in multiple licensees operating within the sector, with a greater degree of private sector participation.
These market reforms have made it necessary for the Multi-Year Price Determination Tariff Methodology (MYPD Tariff Methodology) and Operating Reporting Manual (ORM), used for regulating tariffs and charges in the ESI, be revised to accommodate the evolving needs of the sector.
This was outlined in the 9th Edition of Umlawuli Wemandla, the official newsletter of the Eswatini Energy Regulatory Authority (ESERA), which provides a comprehensive look into the regulatory developments shaping the future of energy in Eswatini.
According to ESERA Tariff Analyst Nozipho Mthimkhulu, the revised MYPD Tariff Methodology introduces several key updates aimed at aligning with the transformation in the energy sector. The framework allows for regulation of distinct activities such as generation, transmission, system operation, distribution and supply through ring-fenced financial structures.
Other significant changes include the introduction of an incentive scheme for promoting efficiency, flexible control periods of two to five years and a re-opener provision to adjust tariffs mid-period in response to unforeseen developments.
The revised methodology categorises licensees into three groups: monopoly licensees including the public utility (Category 1), licensees with long-term Power Purchase Agreements (PPAs) and contracts with the system operator (Category 2), and willing buyer–willing seller market participants (Category 3).
The 2024 tariff review was conducted using the 2011 methodology, with the revised framework set to be gazetted and formally adopted in 2026.
ESERA Chief Executive Officer (CEO) Skhumbuzo Tsabedze stated that the regulator’s mission is to ensure an inclusive, viable and sustainable energy industry through impartial, effective and efficient regulation of the Electricity Supply Industry and the downstream petroleum industry.
Tsabedze said despite the complex dynamics that various local regional and international market factors characteristically present to the energy industry, ESERA continues to make its best efforts to ensure the viability and efficiency of the industry through the various initiatives, projects and programmes it continues to roll out.
Meanwhile, ESERA Engineering Manager Sihle Magagula provided updates on the development and application of the Embedded Generation (EG) By-laws, which were formulated under Section 21 of the Electricity Act of 2007.
The by-laws were developed following the initial Small-Scale Embedded Generation (SSEG) Framework in 2021. The process involved engagements with stakeholders including the Eswatini Electricity Company (EEC), embedded plant owners and technical experts. A pilot initiative was also conducted to inform amendments.
Key features of the by-laws include:
- Net-billing: EG customers can export surplus electricity to the grid and receive credit at an approved tariff. No monetary compensation is provided.
- Grid interconnection requirements and metering provisions.
- Compliance with quality of supply and quality of service standards.
- Licensing requirements and technical standards.
The by-laws apply to all parties involved in embedded generation including EG customers, distribution and supply licensees and the system operator. Magagula noted that the by-laws are expected to strengthen investment in solar generation and support electricity market development.
The newsletter also covered Eswatini’s hosting of the Interstate Oil Committee (IOC). Principal Secretary for Energy, Lindiwe Mbingo, stated that the IOC serves to facilitate collaboration among Southern African Custom Union (SACU) member states on petroleum supply, pricing and infrastructure development.
Mbingo noted that Eswatini benefits from its IOC membership through:
- Adoption of the Basic Fuel Price (BFP) model.
- Lessons on Strategic Petroleum Reserve Facility development.
- Benchmarking opportunities for ethanol blending programmes.
Eswatini’s Strategic Petroleum Reserve Facility is being developed to secure domestic fuel supply and extend fuel stocks during global or regional disruptions. Financing for the facility has been secured.
Mbingo further noted that Eswatini’s transition to cleaner fuels includes:
- Migration from 500ppm to 50ppm diesel.
- Introduction of an Electric Vehicle (EV) Policy.
- Ethanol blending of petrol using bio-ethanol from RESCorp.
These initiatives are part of the country’s Just Energy Transition (JET) Strategy, which aims to achieve 70 per cent renewable energy in the mix by 2034 and reduce greenhouse gas emissions by 4 per cent by 2030.
The authority is also developing the country’s first LPG Installer Certification Programme in collaboration with the Directorate of Industrial and Vocational Training (DIVT) under the Ministry of Labour and Social Security.
According to Oil and Gas Technical Manager Thokozani Mvubu, the programme aims to enhance safety, professionalise the industry and support economic growth. Unit standards at SZNQF Level 3 cover topics such as:
- Gas safety and instrumentation
- Quality control
- LPG storage installation
- Regulatory compliance with the Occupational Health and Safety Act
Rollout of fuel service station licensing model
MBABANE – The newsletter highlights the development and implementation of the Model for the Efficient Allocation of Service Stations.
This is a regulatory tool created to improve the equitable distribution of petroleum retail infrastructure.
ESERA Laboratory Supervisor Sanele Thwala stated that the model was developed in line with the Petroleum Act No. 18 of 2020. It uses data-driven tools such as GIS and Excel to assess geographic distribution, fuel demand, road networks and infrastructure availability to determine optimal locations for retail fuel sites.
The model was developed in collaboration with a wide range of stakeholders, including the Ministry of Natural Resources and Energy, Ministry of Public Works and Transport, fuel wholesalers, municipalities, retailers, financial institutions and others.
Its objectives include identifying undersupplied areas, preventing overcrowding in already saturated regions and providing guidance to potential investors through an interactive online map.
Thwala confirmed that the model will only be applied to new licence applications and will not affect already licensed fuel retailers. It will be implemented in phases beginning with the publication of the map.
… RESCorp’s ethanol plant, biofuel development
MBABANE – The Educorner section profiled the Royal Eswatini Sugar Corporation (RESCorp) ethanol plant at Simunye.
According to the newsletter, the facility was commissioned in December 1995 with an initial production capacity of 12.5 to 13.7 million litres annually. Following expansion in 2006, the plant now produces 32 million litres over 36 weeks.
Production is divided into 30.4 million litres of 96.5 per cent potable ethanol and 1.6 million litres of low-grade ethanol. The plant also includes an anhydrous unit capable of producing 10 000 litres per day of fuel-grade ethanol for petrol blending.
The feedstock used is molasses and one of the by-products, Concentrated Molasses Stillage (CMS), is sold for use as fertiliser.
Law enforcement responds to copper cable thefts
MBABANE – Senior Assistant Commissioner of Police, Nicholas Jele, was interviewed by this newsletter regarding ongoing efforts to combat copper cable theft.
He attributed the increase in such crimes to the absence of legislation regulating copper, as well as strong demand from scrap dealers and regional markets, particularly South Africa.
Jele confirmed that memorandums of understanding (MoUs) have been signed with affected entities such as EEC, EPTC and EWSC and that cooperative agreements exist with South African police to manage cross-border incidents. He added that copper thefts often occur in rural areas and involve semi-skilled individuals. The police continue to encourage public reporting through their toll-free line (999) and warned against mob justice.
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