THE EEC ARE INCREASING ELECTRICITY TARIFFS BY 8.02% FROM APRIL 2024

Eswatini Electricity Company (EEC) logo

Written by Fundizwi Sikhondze

Eswatini's power utility public enterprise the Eswatini Electricity Company (EEC) has recently announced that it was going to effect a 8.02% increase in electricity tariffs ,a second increase since the Eswatini Energy Regulator Authority (ESERA),through a February 2023 Tariff Order, approved a multi year tariff increase in electricity. The EEC ,according to the 2023 tariff order, had applied to have a tariff increase of 21.4% for each year of 2023/24 and 2004/25.

When the ESERA conducted stakeholders around the four regions of Eswatini the tariff increase application was roundly rejected by various stakeholders with reasons such as unaffordability of electricity, high rates of unemployment and increased cost of business.

In February 2023 however the ESERA granted the EEC tariff increases for the two years they had requested albeit giving them less than half of what they had applied for in the 10.4% and 8.02% respectively that was eventually granted. In April 2023 the EEC effected 10.14% tariff increase and in April 2024 they will effect the 8.02% tariff increases for the year 2024/25, starting from 1st April 2024.

The increase in the electricity tariffs by a further 8.02% may effectively mean that the cost of each Kilowatt hour (kWh) or unit of electricity will be E2.3266.00 (Two Emalangeni ,thirty two cents..) and in simpler calculations ,E50.00 worth of electricity will give 21.49 units and E100.00 will now buy 42.98 kwh or units. For small businesses the new tariff will be E2.7617.

These increase in the cost of a critical utility such as electricity at a rate, that is well beyond the average increase of wages which hovered around 4% in the 2023/24 financial year, is certainly going to lead to increased expenditure and will likely eat deeply into workers savings and thus inflame the household debt that has been a concern for workers and policy makers alike. Businesses are also likely to hike prices for goods to mitigate the effect of the electricity increase on their profits thus making goods workers consume on a daily basis more expensive.

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