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SERA UNDERTAKES ELECTRICITY SUPPLY STUDY

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MBABANE – The Swaziland Energy Regulatory Authority (SERA) is undertaking an electricity supply study.


The objective of the study is to determine the actual costs of supplying a unit of electricity to each consumer class.


Explaining what prompted SERA to undertake the study, SERA Chief Executive Officer (CEO) Vusi Mkhumane stated that the Eswatini electricity supply industry was failing to attract investment in generation.


He said one of the reasons for this had been identified to be the absence of a cost-reflective tariff.
Cost reflectivity refers to the actual cost per unit of electricity supplied, that the utility or service provider would incur in supplying electricity to the various customer categories and has to recoup that cost from customers through the sale of electricity units.


For instance, the report is expected to tell SERA the unit cost of supplying electricity to domestic consumers and the same to commercial and industrial customers.


Industrial customers are the high voltage and capacity consumers of electricity.
Electricity is an input item in the production of their products and services which include mining companies among others.
They require high voltage supply and buy bulk electricity for their operations, while commercial consumers are the business customers that use electricity for various uses like lighting, cooling and heating.


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