EEC TO ‘CUSHION’ ESKOM’S 15% PROPOSED HIKE

MBABANE – Relief!

This best describes the feeling to be evoked among businesses who could heave a sigh of relief following Eswatini Electricity Company’s (EEC) assurance to minimise the anticipated increase in operational costs. The increase in production and operational costs could come about as a result of the proposed electricity hike by 15 per cent, which has been forwarded by Eskom – Eswatini’s major electricity supply source - to the National Energy Regulatory Authority (Nersa) which could influence the local power utility’s application to the Eswatini Energy Regulatory Authority.

Carried

Reacting to the report carried by Business Day to the effect that Eskom had forwarded an application for a 15 per cent tariff increase, EEC Corporate Affairs Manager Sifiso Dhlamini narrated that Nersa has already approved a 4.1 per cent pass through in terms of recoveries for Eskom. He explained that this means that if Eskom applied for an average of 15 per cent over and above the 4.1 per cent approval, this meant that Eskom could be awarded on average between 4.1 per cent and 19.1 per cent. Dhlamini confirmed that it was true Eswatini imports a bulk of its energy from Eskom, and the impact of an increase would mean an increase in their energy purchase costs.

“Do note that this is an average increase, hence we can be awarded a higher or lower tariff increase compared to the average increase. The utility will only be in a position to know the increase to us by mid –March,” said Dhlamini. Further, Dhlamini added: “as much as we have contractual arrangements with Eskom, we make great effort in ensuring that the average purchase price (inclusive of all our energy suppliers) increase is at a reasonable level.”

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