Eswatini Electricity Company Seeks Another Tariff Hike

The Eswatini Electricity Company (EEC) has applied for another electricity tariff increase, seeking an 18.38 per cent hike for the 2027/28 financial year and a further 14.68 per cent adjustment for 2028/29. This move comes barely seven months after the latest adjustment took effect. The power utility has approached the Eswatini Energy Regulatory Authority (ESERA) with a revenue requirement of E4.683 billion for the financial year 2027/28 and E4.939 billion for 2028/29.

According to ESERA CEO Sikhumbuzo Tsabedze, the proposed revenues are required to cover prudently incurred costs, maintain network operations, and ensure the continued reliability and quality of electricity supply. The application is driven primarily by the cost of bulk electricity purchases, which constitute approximately 61 per cent of the total revenue requirement, as well as the recovery of E533.1 million in past under recoveries.

If approved, the first increase would take effect from April 1, 2027. In practical terms, the proposed 18.38 per cent increase means that consumers who currently receive approximately 35 units of electricity for E100 could receive only about 29 units for the same amount, assuming the increase is applied directly to the unit tariff. This would effectively mean that consumers would have to spend more money to maintain their current electricity consumption.

This latest application is significant as it comes shortly after previous electricity tariff adjustments. In April 2025, consumers faced an average electricity tariff increase of eight per cent after government intervened to reduce the impact of the increase approved by ESERA. The situation was repeated in April 2026, when consumers faced another adjustment. Although ESERA initially approved an average increase of 13.61 per cent, government funding subsequently reduced the effective average adjustment to 11.74 per cent.

The cost-of-living pressure in Eswatini is also reflected in the country’s inflation figures. According to the Central Statistical Office’s September 2026 Consumer Price Index report, annual inflation stood at 2.9 per cent, up from 2.8 per cent in August. Housing and utilities recorded annual inflation of 5.9 per cent, with electricity prices increasing by 15.1 per cent and water supply by four per cent.

Households have also had to contend with increases in the price of bread, fuel, and other essential goods, placing additional pressure on disposable incomes. In October 2025, consumers were informed of a seven per cent increase in bread prices, which took effect on November 1 of that year. Barely 11 months later, another 4.23 per cent increase was approved, taking effect on October 1, 2026.

The proposed electricity tariff increases could add another burden to households and businesses already having to adjust to changing prices. For families that depend on prepaid electricity, the increases could have a significant impact on their budgets. The ESERA will review the application and make a decision on the proposed tariff increases.

Key points

• EEC seeks 18.38% and 14.68% tariff increases for 2027/28 and 2028/29
• Proposed increases driven by cost of bulk electricity purchases and past under recoveries
• Consumers face additional financial squeeze amid rising cost of living