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ESWATINI ELECTRICITY COMPANY (EEC) APPLIES FOR ADDITIONAL 13.67% TARIFF FROM ESERA

An image depicting the EEC. Source Online 


Written by Fundizwi Sikhondze

The Eswatini Electricity Company (EEC) has made an application of an additional tariff increase of 13.67% over and above the already awarded 7% tariff increase for the 2026/27 financial year. In total the EEC'c application, if successful, will lead to the electricity tariff to be adjusted 20.67% higher on 1st April 2026, the commencement period for the 2026/27 financial year.

The application was submitted to the energy regulator, the Eswatini Energy Regulatory Authority (ESERA) around the 29th December 2025. ESERA is a regulatory authority in the energy sector that was established by the Energy Regulatory Act 2007 to regulate ethe energy industry including the setting of the tariffs. 

In their application the EEC indicated that they were encountering difficult conditions, particularly, the costs associated with the importation of energy from South Africa, from Mozambique, from the Southern African Power Pool (SAPP) and lately from Botswana. They further indicated that they need around 880gwh electricity energy every year yet they can only produce between 280 and 370 GWH or roughly around 20% of the overall energy needed in the country. A tariff increase by 3.06% by ESKOM in South Africa in September 2025 is alleged to have prompted the EEC to seek a higher tariff as well. 


Costs recovery and survival difficulties

In their application the EEC stated that they seek to recover E437 883,115 which comprises of funds overspend towards purchasing energy from ESKOM (169,861,004) as well funds that are losses from the 2023/24 period (262 817,788).

The EEC further drew attention to the struggle to survive they are facing by revealing that they were surviving on an overdraft facility that had run up to around E195 million for their short-term operational and supplier obligations. They further reported that the overdraft facility with their banker was reported to have attracted an interest of E7m. Overall, the EEC is projected to be at a E231m deficit when the current financial year ends in March 2026.

 If the tariff increase is approved as proposed a E100.00 worth of electricity will give an EEC customer 32 units of electricity while currently E100.00 fetches 40 units of electricity.

ESERA Tariff Methodology

According to the 2024 ESERA tariff review methodology guideline the key factors applied by ESERA in determining determines a tariff increase application include affordability, non-discrimination of customers, predictability as well as whether the entity making the application is stable and transparent. ESERA's methodology includes public participation in the process to determine the validity and otherwise of the application to increase the tariff.

In reference to affordability the tariff being applied for is expected by ESERA to be affordable to the low-income consumers as well as rural consumers. They added that affordability needed to have clearly defined subsidies targeting low-income consumers.

ESERA is equally obligated to ensure that energy companies making an application of a tariff increase are able to recover the costs of conducting its business as well to make a reasonable return on their investment in the business.

 ESERA developed a guideline document to assist them determine a tariff increase request called, "Electricity Multi- Year Price determination tariff methodology for the regulation and approval of tariffs, prices and changes in the electricity supply industry of Eswatini".


Public Hearings

In response to the EEC application the ESERA has scheduled public hearings that are to commence in the Shiselweni region on Tuesday 20th January 2026 in Nhlangano town, then on Wednesday 21st January 2026 at Sibanesami Hotel (Ezulwini) for the for the first Hhohho hearing, Thursday 22 January 2026 at Siteki town for Lubombo region, Friday 23 January 2026 at Thokoza Church Centre for the second Hhohho region hearing and the last one will be on Saturday 24th January 2026 in Manzini.

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