E200m cushion adds just one extra unit per E100

Government’s E200 million intervention to cushion electricity consumers has reduced the approved tariff increase for the 2026/27 financial year from 13.61% to 11.74%, translating to a shift from about 34–35 units to roughly 36 units for every E100 spent.

This is a difference of 0.64 units per E100, providing a vital marginal gain for households and businesses facing rising costs.

While the reduction signals relief on paper, the actual benefit to consumers remains modest, with the adjustment effectively restoring only about one additional unit per E100 compared to the initially approved tariff.

The Eswatini Energy Regulatory Authority confirmed the revision in a statement following government’s decision to intervene after the regulator had earlier approved a 13.61% increase, down from the 20.67% initially requested by the Eswatini Electricity Company.

According to ESERA Chief Executive Officer Sikhumbuzo Tsabedze, the intervention was structured to provide both immediate and long-term relief, with 60% of the E100 million allocated for 2026 applied to reduce the impact of the current tariff adjustment, while the remaining 40% together with the E100 million earmarked for 2027 will be reserved to cushion future increases.

“As stated by government, the regulator, working with EEC, will decide the extent to which this funding will bring relief to the public and to mitigate future acute increases,” said Tsabedze.

RELATED | Govt’s E200m to cushion electricity tariff hike

He explained that the revised 11.74% average tariff increase follows an assessment of the government intervention and engagements with EEC, noting that the approach aims to smooth tariffs over time rather than eliminate increases altogether.

The Authority indicated that domestic tariffs would increase by 15.09%, while energy charges for corporate customers, both time-of-use and non-time-of-use, would rise by 14.95%.

Demand charges will also increase by 14.95%, while facility and access charges will go up by 4.86%. The lifeline tariff, which targets low-income households, has been limited to a 6% increase in recognition of their vulnerability.

The tariff adjustment, which takes effect on Wednesday, April 1, is largely driven by rising electricity import costs following renegotiated Power Purchase Agreements as well as an under-recovery recorded in the 2024/25 financial year.

ESERA noted that its decision-making process took into account stakeholder submissions, nationwide consultations as well as detailed technical and economic analyses before arriving at the revised tariff.

Government’s intervention, announced after the regulator’s February decision, was aimed at easing pressure on households and businesses while maintaining the financial sustainability of EEC and ensuring reliability of electricity supply.

Despite the E200 million injection, the marginal increase in units per purchase underscores the limited immediate relief for consumers, highlighting the ongoing challenge of balancing affordability with the rising cost of electricity supply in the country.

Tariff Comparison Snapshot