Mbabane – Eswatini Electricity Company (EEC) customers who own Solar PV systems are required to register them with the electricity company before December 3, 2024 in compliance with the Electricity Act 2007.
Failure to comply, these customers will face penalties from EEC which is payment of a fine of E50 000- or two-years imprisonment or both as given powers by the Electricity Act 2007.
This was confirmed by the electricity company through a statement issued to Independent News.
According to the communique, the electricity company is undertaking an important initiative to regulate and manage embedded generation systems, particularly Solar PV, that are connected to the national electricity grid.
As part of this effort, all customers who own such systems must register their embedded generators with the EEC by December 3, 2024.
This communique therefore aims to inform and sensitize the public about the crucial aspects of the Small-Scale Embedded Generators Project, emphasizing the need for compliance, the registration process, and the potential risks of non-compliance.
The memo further explains that an Embedded Generator (EG) is a power generation system that is connected to the electricity distribution network but is owned and operated by a consumer for self-consumption.
Common forms of EG include Solar PV (photovoltaic) systems, but other renewable technologies such as wind, hydro, and biogas can also be considered. These systems help reduce dependence on grid power and contribute to a more sustainable and diversified energy mix.
To clarify why customers needed to register EG systems, the company highlighted that under the Electricity Act of 2007, all customers with EG systems must obtain specific permission from the EEC before connecting their systems to the grid.
This is a legal requirement, and failure to register could lead to disconnection from the EEC network. The registration ensures that all systems are compliant with national safety, regulatory, and technical standards.
“We encourage all customers with Solar PV or other forms of embedded generation to register their systems by the deadline of 3 December 2024. This initiative will help build a reliable and sustainable energy future for Eswatini. For more information or if you have any questions, please visit the EEC website at www.eec.co.sz or contact the EEC customer service team for assistance. Let’s work together to make this transition smooth, safe, and effective,” read the statement in part.
Meanwhile, The Eswatini Electricity Company (EEC) has filed an electricity tariff review application for the financial years 2025/26 and 2026/27 with the Eswatini Energy Regulatory Authority (ESERA) requesting for a revenue requirement of E8 789 556 986.
During a press briefing, the regulator’s Chief Executive Officer (CEO) Skhumbuzo Tsabedze disclosed that EEC requests for a revenue requirement of E4 219 416 214 for the financial year 2025/26 and E4 570 140 772 for the financial year 2026/27.
“This translates to an average tariff increase of 25.51 per cent for the financial year 2025/26 and 27.06 per cent for the financial year 2026/27 excluding the 2.5 per cent electrification access fund levy and 15 per cent VAT,” said the CEO.
He said in terms of Section 5(1)(f) of the Energy Regulatory Act read with Section 32 of the Electricity Act, together with Section 5 and 6 of the Tariff Methodology, the ESERA is mandated to undertake a review, once the request is received by November 1. The authority is then expected to announce a decision not later than February 1 of the following year after a three months review process.
ESERA then holds public hearings to gather input from the public and other interested parties. ESERA then considers many factors, including the need for utilities to cover their costs while also keeping prices affordable for consumers. It may also consider the economic situation and whether there are alternative sources of electricity. The regulator then approves a tariff increase or decrease. For instance, in 2020, EEC requested a 7.16 per cent tariff increase for two years. ESERA approved a lower increase, allowing EEC a revenue of E2.25 billion in 2021/22 and E2.60 billion in 2022/23. In 2023, ESERA approved a 10.14 per cent increase for the 2023/24 financial year and an 8.02 per increase for the 2024/25 financial year.
In its recent application, EEC mentioned that currently, electricity prices do not cover the full costs of supplying power across the various tariff categories. Therefore, their application at that time continued the migration to cost-reflective tariffs across the various tariff categories.
The local utility’s application for tariff review follows that of South Africa’s state-owned electricity company, Eskom, which applied to the National Energy Regulator of South Africa to approve a 36.1 per cent electricity price hike from April 2025, an 11.8 per cent price increase in 2026 and a 9.1 per cent increase in 2027. It is worth noting that EEC imports most of electricity from ESKOM.
EEC’s application comes just when the House of Assembly has approved a 12 per cent water tariff hike, which will be staggered in the next three years. The water tariff hike that will be effected at four per cent every year was approved through the adoption of a report by the Ministry of Natural Resources and Energy House of Assembly Portfolio Committee, despite opposition by some Members of Parliament (MPs). The MPs who supported the hike were convinced by the idea that the hike will fund Eswatini Water Services Corporation’s (EWSC) initiative to expand to rural areas.
The Chairperson of the Natural Resources and Energy Portfolio Committee in the House of Assembly, Madala Mhlanga, said the tariff should have been implemented in April this year, as currently EWSC is operating at a loss. He said the annual four per cent tariff will be implemented beginning next year, 2026 and in 2027, amounting to 12 per cent in total. Currently, EWSC is making a loss of E0.2 million. He added that the annual four per cent is the least that EWCS could get, after serious consideration by experts.
Provisions of the Act;
The Electricity Act of 2007
The Electricity Act of 2007 provides for the regulation of the Electricity Supply Industry in Eswatini. It generally regulates the generation, transmission, distribution and supply of electricity in Eswatini. Any person generating, transmitting, distributing or supplying electricity in the country is required to be licensed by the Energy Regulatory Authority.
Power activities for which a license is required are as follows:
- Generation of electricity.
- Transmission of electricity.
- Performing the functions of integrated power system operator.
- Distribution of electricity.
- Supply of electricity.
- Off-grid and mini-grid supplies of electricity.
- Importing and exporting electricity into or outside of the Kingdom.
Exemptions
People or entities that do not need a license to generate, transmit, distribute and supply electricity are the following:
- Any person who generates, transmits or distributes electricity for his own use.
- Any person who sells less than 1GWh of electricity per annum to customers.
- Off-grid and mini-grid schemes specifically exempted by the Minister under the statutory ministerial powers provided for.
It is an offence to generate, transmit, distribute or supply electricity without a license duly issued or granted by the Energy Regulatory Authority. Any person found to have done this outside the parameters of the law is guilty of an offence and may be fined an amount of up to E50 000, sentenced to 2 years imprisonment or both.
Key Reasons for Registration:
- Compliance with National Legislation: The law prohibits the connection of unapproved EG systems to the grid.
- Safety and Network Integrity: Ensures the safety of both the public and EEC workers, and prevents disruptions to the electricity grid.
- Protection Against Liability: Without proper approval, the system owner could be held financially and legally liable in case of accidents, property damage, or loss of life.
What Happens If I Don’t Register My EG System?
If a customer does not register their EG system by the deadline of 3 December 2024, the following consequences may occur:
- Disconnection: The EEC has the authority to disconnect any unregistered system from the grid, as per the Electricity Act, 2007.
- Penalties: Customers who fail to comply may be subject to penalties.
- Risk of Safety Incidents: Unauthorized systems could cause safety hazards or damage to the grid, and owners would bear full responsibility for any incidents.
How to Register an EG System?
The process of registering an embedded generation system is straightforward. Here are the 3 simple steps to complete your application:
- Download the Application Form: Access the form from the EEC website at www.eec.co.sz or scan the barcode provided in the registration document.
- Complete the Application Form: Fill in the form with the required details and attach the necessary supporting documents.
- Submit the Application: Email the completed form and documents to apply-eg@eec.co.sz.
What Documents Are Required for Registration?
To ensure the EEC can process your registration, you will need to submit the following documents:
- Preliminary Schematic Diagram of the system.
- Generator Production Profile (e.g., capacity, output, type of generation).
- Inverter’s Datasheet or Model Number to verify compatibility with grid requirements.
Do I Need Permission for Off-Grid Systems?
If your system is not connected to the distribution grid (i.e., an off-grid system), you do not need permission from the EEC. However, if your system is connected to any wiring that links to the national grid, it is still considered an embedded generator, and you must obtain approval.
What Are the Technical Requirements for Approved EG Systems?
All EG systems must meet a set of technical standards to ensure they do not compromise the safety, power quality, or reliability of the electricity grid. The EEC has established specific criteria for approval, and all approved systems must comply with these regulations. For detailed information, refer to the Requirements for Embedded Generation in Eswatini Electricity Company’s Electrical Network, which is available on the EEC website.
Will There Be Any Costs for Registration?
Currently, registration is free of charge. However, there may be additional costs for metering and grid impact studies during the approval process. Additionally, the EEC is working on establishing appropriate EG export/feed-in tariffs for customers who wish to export energy to the grid. Until then, customers will not be allowed to export power to the grid, so it is important to size your system accordingly.
Why is Registration So Important?
Registering your embedded generation system ensures that:
- Safety standards are met, preventing any risks to EEC workers, the public, and the electricity grid.
- Technical compatibility with the grid is maintained, avoiding disruptions or damage to the network.
- Legal compliance is achieved, reducing the risk of penalties or disconnection.
- Sustainable energy solutions are supported, promoting cleaner, greener energy production for Eswatini.
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