EEC APPLIES FOR 5.9% ELECTRICITY TARIFF HIKE

 MBABANE – Businesses should brace themselves for a probable increase in production costs, following an application for a 5.9 per cent increment in electricity tariffs.

A reliable source has revealed to the Business Desk that the tariff increase application has been forwarded by the Eswatini Electricity Company (EEC), to the Eswatini Energy Regulatory Authority (EERA). “EEC has applied for a 5.9 per cent multi-year tariff increase for the 2018/19 and 2020/2021 financial year to recover their costs,” disclosed the source.

Communication

EERA Manager Consumer and Stakeholder Management Sikhumbuzo Nkambule, could only say:“all communication with regards to the EEC tariff application will be issued in due course.”

In February 2017, the authority approved a multi-year average tariff increase of 15 per cent over the 2017/19 and 2018/19 financial years. All fixed charges, including the access charge for the 2018/19 financial year increased by 6.4 per cent.   

EEC is a power utility, which was formed in 1963 to provide electricity to the Swazi nation by sourcing or generating power using the least cost sources of energy.

The company currently operates in a liberalised market through the Electricity Act of 2007 and the Energy Regulatory Act of 2007. EEC imports 80 per cent of the electricity demand from Southern Africa countries through Bilateral Agreements also from the Day Ahead Market (DAM) in Southern African Power Pool (SAPP).

Locally, the company buys five per cent from one local Independent Power Producer (Ubombo Sugar Limited) and generates the other 15 per cent from its internal power stations.
On another note, it should be mentioned that a relief is on the cards for businesses who are currently subsiding electricity consumers, some of which are not vulnerable.

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