Home News Sugar cane farmers warn of shutdown amid proposed tariff hike
News

Sugar cane farmers warn of shutdown amid proposed tariff hike

Share
Some of those who attended the hearing. (Pics: Sabelo Majola)
Share

SITEKI – Sugarcane farmers have urged the EEC to strike a balance between affordability and reliability as they heavily depend on electricity for production.

Eswatini Electricity Company (EEC) has applied for an average electricity tariff increase of 20.67 per cent for the 2026/27 financial year. The entity has cited rising import costs and an under-recovery recorded in the previous financial period.

According to EEC Managing Director, Ernest Mkhonta, the amount is made up of E175 065 326 linked to import tariff escalations, mainly adjustments from power suppliers including National Transmission Company South Africa (NTCSA)/Eskom, Electricidade de Mozambique (EDM) and Ubombo Sugar Limited (USL), as well as E262 817 788 arising from the 2024/25 under-recovery.

During the third consultation exercise hosted by the Eswatini Energy Regulatory Authority (ESERA) in collaboration with EEC at Siteki Hotel yesterday, sugar cane farmer Sipho Nkambule said the agricultural sector relies significantly on electricity for irrigation and other operations.

“If it becomes unavailable or unaffordable, it means we will have to shut down production as well,” he said. He added that it is important for farmers to balance affordability and reliability.

Nkambule further said while EEC had indicated that it had conducted an efficiency study, the findings had not yet been shared with the public.

Another sugar cane farmer, Sifiso Gina, urged government to intervene in the matter, noting that EEC is 100 per cent owned by the State. He argued that the financial burden placed on consumers was excessive.

“It feels like we are now paying for all your expenses,” he said.

Gina warned that if the situation continued, ordinary citizens would struggle to afford electricity.

“The general public will end up buying 15 units for E200,” he said.

He further suggested that EEC should allow members of the public to buy shares in the company, arguing that citizens already had a stake in the entity.

“We already own EEC, so include us in everything,” he said.

Gina also expressed scepticism about the consultation process, claiming that tariff increases were often implemented despite public objections. “At the end of the day, EEC will make the increase after all, even though they can hear that the public is rejecting the tariff hike,” he said.

Highlighting the financial strain on farmers, Gina revealed that he pays more than E25 000 monthly for electricity at his sugarcane farm. However, he said he did not fully understand how the charges were calculated.

*…

Over E32m spent on natural hazards damages 

SITEKI – High contract invoices due to repeated storms and copper theft and network vandalism cost Eswatini Electricity Company at least E32 232 493 in 2024.

This was revealed by the company’s Managing Director, Ernest Mkhonta when giving justification for the proposed 20.67 per cent proposed electricity hike.

He said this is in respect of wind and hail experienced in October on the same year, whose costs amounted to E11 635 418, lightning and thunder in September with repair damage amounting to E6 297 158 and lightning and thunder in December amounting to E14 299 916.

“Prices must cover the full cost of providing electricity from existing assets and imports to ensure EEC is financially sustainable,” he said.

*Full article available on Pressreader*

Thulasizwe Zwane making  his submissions.
Thulasizwe Zwane making his submissions.
EEC Managing Director, Ernest Mkhonta making his presenatation. (Pics: Sabelo Majola)
EEC Managing Director, Ernest Mkhonta making his presenatation. (Pics: Sabelo Majola)

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

Customary marriages declared in community of property

MBABANE – The High Court has declared the long-standing practice of treating marriages under Eswatini Law and Custom as being out of community...

Inyatsi Construction building foundations of First World future

For more than four decades, Eswatini has witnessed one of the most significant periods of infrastructure development in its history. Under the leadership...

No more USA Visa processing in Eswatini

MBABANE – In a move that will significantly alter travel logistics for Eswatini nationals, the United States Embassy in Mbabane will cease accepting...

King moves to save Ncangosini residents from eviction

KONTSHINGILA – Hundreds of residents living on a privately owned farm at Ncangosini, Kontshingila, are set to be spared from eviction after an...

Each MP set for E1m handshake

MBABANE – When the 12th Parliament assumed office in 2023, an ordinary Member of Parliament (MP) was earning a basic monthly salary of...

Related Articles

I don’t have money to compensate them – Polycarp

MONENI – Moneni overseer Prince Polycarp says he does not have the...

New regulations to crack whip on online media

MBABANE - For sometime, government has struggled with creating a fair, ethical...

Chinese nationals seek hotel accommodation pending deportation

MBABANE – Eleven Chinese nationals have approached the High Court seeking an...

PM reaffirms Eswatini – Taiwan partnership upon arrival in Taiwan

MBABANE-Prime Minister (PM), Russell Mmiso Dlamini, has reaffirmed Eswatini’s enduring partnership with...