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

Mountain homes face demolition

MBABANE – EmaSwati who were allocated land on hills and mountainous areas could soon see their homes demolished as the Land Management Board...

Bhunu Mall incident: Project manager not qualified engineer

MANZINI – The ongoing construction of the Bhunu Mall has brought to the fore critical questions surrounding statutory compliance. At the centre of...

Public transport fares could increase by 25%

LOBAMBA – Public transport fares could increase by up to 25 per cent under a proposed adjustment by the Ministry of Public Works...

‘MaMkhize’ brings back black, white kit

(At Prince of Wales Sports Ground) MBABANE – It was indeed a homecoming party. This came after Mbabane Highlanders President Shauwn ‘MaMkhize’ Mkhize...

Home Affairs Corruption: Cleaners fired for selling marriage certificates

MBABANE – Two Ministry of Home Affairs cleaners have been dismissed from the public service after admitting to soliciting money from the public....

Related Articles

Jenny Internet injects E570 000 into EITF free Wi-Fi

MANZINI – Jenny Internet has committed E570 000 towards providing free high-speed...

PM seeks WFP help to build grain reserves

MBABANE – Prime Minister Russell Mmiso Dlamini has asked the World Food...

Ending ‘build, forget’ era: Eswatini redefines infrastructure

MBABANE – Eswatini’s construction policy warns that inadequate maintenance is putting public...

Murder accused pastor’s mother: I won’t pay bail

MFABANTFU – Alice Shabangu, mother of alleged killer pastor Nkosingiphile Allen Zwane,...