Mbabane — Eswatini Electricity Company (EEC) has reported an operational loss of E247.2 million for the 2025 financial year, a 25.2 per cent increase from previous losses, highlighting growing financial strain on the utility.
The figures, disclosed in EEC’s Integrated Annual Report for 2025, show a sharp deterioration in operational performance over the past four years. The company swung from a core operating profit of E139.5 million in 2022 to losses of E74.5 million in 2023, E69.5 million in 2024, and the current unprecedented E247.2 million in 2025.
The report attributes the rising losses primarily to soaring costs of imported electricity, driven by high tariffs and a regional drought that caused an 11.9 per cent decline in local power generation from 319GWh in 2024 to 281GWh in 2025. While revenue from electricity sales grew from approximately E2.34 billion in 2023 to E2.95 billion in 2025, these gains were outpaced by operational expenses.
“Although EEC continues to grow revenue, the cost of providing electricity, especially through imports, has risen faster than the income generated,” the report states. Administrative, distribution, and power generation costs have all increased, further straining the company’s finances.
The utility’s reliance on non-operational factors to maintain profitability is evident. In 2024, EEC recorded a net profit of E101 million despite an operational loss of E69.5 million, largely due to a new VAT rating that allowed the company to reclaim input VAT. This cushion proved temporary, with 2025 resulting in a net loss of E80.4 million.
EEC also continues to face liquidity challenges caused by long-overdue debts from government entities and state-owned enterprises. Despite these financial pressures, the company increased capital expenditure to E801 million in 2025 to fund network expansion and strengthen the electricity grid, signalling a commitment to long-term reliability amid short-term operational difficulties.
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