Africa-Press – Eswatini. In a move aimed at striking a fair balance between electricity consumers and the Eswatini Electricity Company (EEC), the Eswatini Energy Regulatory Authority (ESERA) has reduced the proposed electricity tariff increase from 20.67% to 13.61%.
The announcement was made on Tuesday afternoon, February 10, 2026, during a media briefing held at Mountain View Hotel in Mbabane. ESERA confirmed that while EEC had applied for an average tariff increase of 20.67%, the regulator had approved a lower adjustment of 13.61% following extensive public consultations and a detailed regulatory review process.
The approved tariff adjustment will come into effect on April 1, 2026.
As a result of the new tariff structure, consumers will now receive approximately 34 electricity units for E100, compared to the current 40 units. Had the original 20.67% increase been approved, consumers would have received only 32 units for the same amount.
Speaking to journalists from various media houses, alongside officials from both ESERA and EEC, ESERA Chief Executive Officer Sikhumbuzo Tsabedze explained that the decision to reduce the proposed increase was guided by the need to carefully consider submissions from all stakeholders.
“As the country’s energy regulator, we are required to perform a balancing act between the service provider and electricity consumers,” said Tsabedze. “We are fully aware that consumers made it very clear during our consultations that they were not ready for such a steep increase. At the same time, we also had to take into account the operational and financial realities faced by EEC.”
He emphasised that denying EEC any increase at all would pose a serious risk to electricity supply in the country, while approving the full 20.67% would have placed an excessive economic burden on consumers.
“We could not allow a situation where EEC receives nothing, because that would compromise the availability of electricity. On the other hand, giving EEC everything it requested would make electricity unaffordable for many Emaswati,” he said.
Regulatory Review Process
ESERA confirmed that the tariff adjustment application submitted by EEC was reviewed in accordance with the Energy Regulatory Act of 2007, the Electricity Act of 2007, the Tariff Methodology of 2011, and other relevant regulatory instruments.
In its application, EEC stated that during the 2025/26 financial year, several Power Purchase Agreements (PPAs) expired and had to be renegotiated. These renegotiations resulted in significant increases in import tariffs, which substantially raised EEC’s cost of supply.
Additionally, a reconciliation exercise for the 2024/25 financial year revealed an under-recovery, further weakening the company’s financial position.
As a result, EEC applied for an increase in its revenue requirement amounting to E437 883 115. This translated to an additional 13.67% on top of the previously announced average tariff increase of 7% for the 2026/27 financial year, effective from April 1, 2026.
Approved Tariff Adjustments
After reviewing the application and conducting a thorough technical and economic assessment, ESERA approved the following:
EEC has been granted an additional revenue requirement of E211 797 361 for the 2026/27 financial year, instead of the E437 883 115 requested. This brings the total approved revenue requirement for 2026/27 to E3 687 043 693.
The total revenue requirement for 2026/27 will be recovered through the following charges:
Category
Amount (E)
Facility Charges
84 117 774
Energy Charges
2 846 632 212
Demand Charges
525 671 077
Access Charges
182 445 001
Total Revenue Recovery
3 638 866 064
The approved revenue recovery translates to an average tariff increase of 13.61% for 2026/27, instead of the 20.67% requested by EEC. The approved increase comprises the previously announced 7%, plus an additional 6.61%.
Domestic tariffs will increase by 17.23%, while energy charges for both corporate time-of-use and corporate non-time-of-use customers will increase by 17%.
Demand charges will also increase by 17%, while time-of-use and non-time-of-use facility charges and access charges will rise in line with the approved inflation rate of 4.86%.
In recognition of the vulnerability of low-income households, the lifeline tariff increase has been capped at 6%, taking into account prevailing socio-economic conditions.
The tariff adjustments will take effect on April 1, 2026, and exclude any taxes or levies enacted or substantially enacted as at the date of approval.
Factors Considered by ESERA
ESERA outlined several key factors that informed its final decision, including:
Stakeholder comments and inputs received during nationwide public engagements, as well as numerous written submissions that significantly enhanced the quality of the review;
Detailed technical and economic analysis of EEC’s cost structure and revenue requirements;
The escalation of Eskom (NTCSA) tariffs effective September 2025, resulting in an 8.4% increase in 2025/26;
NERSA’s additional 3.4% correction for 2026/27, on top of the initially approved 5.36%, bringing the overall adjustment to 8.76%;
An increase in contracted capacity from 160 MW to 190 MW;
An 11% increase in Ubombu Sugar Limited (USL) tariffs;
A 3% decrease in EDM Mozambique tariffs; and
The Regulatory Clearing Account (RCA) balance for 2024/25, approved at E183 660 173, to be liquidated over five years at E36 732 035 per year.
ESERA further indicated that a comprehensive tariff order detailing the full analysis and stakeholder submissions will be published on the Authority’s official website, www.esera.org.sz, in due course.
The regulator reiterated its commitment to transparency, accountability and fairness, noting that the decision was intended to ensure the sustainability of electricity supply while protecting consumers from excessive financial strain.
