Parliament

MBABANE – Members of Parliament (MPs) are expected to demand answers over controversial contract renewal plans involving the heads of two major parastatals under the Ministry of Natural Resources and Energy.

At the centre of the looming parliamentary storm are the Eswatini Electricity Company (EEC) and the Eswatini Energy Regulatory Authority (ESERA), who both assumed the positions in 2021.

This is reflected in a Notice Paper issued by the Office of the Speaker, Jabulani Mabuza, ahead of the upcoming parliamentary sitting.

According to the Notice Paper, the Minister for Natural Resources and Energy will be required to explain the rationale behind renewing the contract of the incumbent CEO of ESERA, Sikhumbuzo Tsabedze despite the officer having allegedly attained the age of 60 years, which is the prescribed retirement age.

Tsabedze joined ESERA in August 2021 and at the time, the Board said he was bringing a wealth of experience in the energy sector as he had spent 13 years in various senior management positions ironically at EEC.

Before his new appointment, Tsabedze had worked as Director of Strategic Services at Eswatini Water Services Corporation (ESWC).

ESERA’s functions are based on strategic objectives designed for the authority to effectively achieve its mandate, which is to regulate the electricity industry in a manner that is transparent, fair and predictable. ESERA also has to promote an environment that will ensure universal access to electricity services and products.

The entity was established in terms of the Energy Regulatory Act, 2007. This Act mandates the authority to administer the Electricity Act, 2007 (Act No.3 of 2007) and the Petroleum Act, 2020.

ESERA has the primary and core responsibilities of exercising control over the Eswatini Supply Industry (ESI) and ensuring the security of supply of electricity through the issuance of licences and the regulation of electricity tariffs and quality of supply and services.

Furthermore, the authority regulates the petroleum industry through the licensing and inspection of downstream activities.

Meanwhile, the Notice Paper reflects that further clarity will also be sought regarding the ministry’s intention to renew the contract of the EEC managing director (MD), who has likewise reached retirement age, and whether such decisions are consistent with the law, retirement policies and the principles of good governance in public appointments.

The developments come amid reports that the contract of Ernest Mkhonta as EEC Managing Director has officially expired, with an acting head reportedly appointed to ensure continuity at the power utility.

It has been gathered that the EEC Board, chaired by Patrick Myeni, recommended the renewal of Mkhonta’s contract, although Cabinet is yet to make a final decision on the matter.

Mkhonta was appointed into the position in October 2021, taking over from Meshack Kunene.

In February, Mkhonta and his management team, together with officials from ESERA, embarked on a nationwide consultation exercise across all four regions to engage the public on a proposed electricity tariff increase.

During the consultations, EEC management explained that the parastatal had struggled to generate sufficient operating cash flows, forcing it to rely on borrowing in order to sustain operations.

Among the major contributors to escalating operational costs, management cited consultancy fees linked to a geo-scientific study conducted across three regions of the country. The study was aimed at assessing the feasibility of generating electricity through geothermal technology.

The consultation exercise followed EEC’s submission of an application for a tariff adjustment for the 2026/27 financial year, in which the utility sought an additional average increase of 13.67 per cent over and above the already approved average increase of seven per cent for the same period. Had it been approved in full, consumers would have faced an overall tariff increase of 20.67 per cent.

The tariff adjustment application incorporated the 2024/25 reconciliation, which reflected under-recovery, as well as import price adjustments arising from revised Power Supply Agreements. The proposed changes affected energy-related components of the tariff structure, namely energy and demand charges.

In justifying the proposed increase, EEC management stated that, as of November 2025, the company had recorded an operating loss of E391 million, while projected cash flows up to March 2026 pointed to a further deficit of E231 million.

*Full article available on Pressreader*  

ESERA CEO Sikhumbuzo Tsabedze (L) and EEC Managing Director Ernest Mkhonta. (File pics)