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.
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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*
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