Mbabane – Government has set aside E200 million over the next two years to cushion households and businesses from the recent electricity tariff increase of 13.61 percent.
Prime Minister Russell Mmiso Dlamini announced the intervention during a media briefing on Wednesday, saying the funding will be channelled through the Eswatini Energy Regulatory Authority.
The funds will be provided in two phases of E100 million each in 2026 and 2027. The regulator will work with the Eswatini Electricity Company to determine how the money can reduce the impact of the tariff increase and help prevent sharp future adjustments.
“ESERA and the Eswatini Electricity Company will decide to what extent the amount will reduce the recently announced tariff increase and mitigate future acute increases,” the prime minister said.
Government moved to intervene after noting public concern about the tariff adjustment and after reviewing the justification presented by both ESERA and the Eswatini Electricity Company.
Dlamini said Cabinet deliberated on the matter following guidance from Mswati III during the Speech from the Throne at the State Opening of the Third Session of the 12th Parliament.
“We would like to appreciate His Majesty’s foresight and wisdom expressed in His Speech from the Throne during the State Opening of the Third Session of the 12th Parliament. Following this call, Cabinet deliberated on this matter, carefully considering submissions made during the consultation process and resolved to intervene to ensure that the negative impact on households and businesses alike is mitigated without destabilising EEC.”
The prime minister said the current tariff pressures stem partly from past decisions to rely heavily on imported electricity rather than developing sufficient domestic generation capacity.
“It is clear that the latest tariffs will have undesired impact on the citizens as well as EEC. The increase in tariffs and corresponding impact is a result of historical decisions made to fully rely on imported power than on locally generated power. Although the citizens of Eswatini are experiencing the impact now, the opportunity to prevent this was missed many years ago.”
Government said the relief measure is intended to assist emaSwati while maintaining the financial stability of the national power utility.
Alongside the financial intervention, government has outlined plans to expand electricity generation within the country as part of a broader push for energy self sufficiency by 2030.
Dlamini said several projects already underway or at advanced stages of implementation are expected to add 188.6 megawatts of power to the national grid.
These include a 75 megawatt solar project led by Independent Power Producers, a 40 megawatt biomass project by Illovo Sugar Eswatini, a 13.6 megawatt Lower Maguduza hydro project, a 10 megawatt expansion of the Maguga Hydropower Station and a 50 megawatt project by RES Corporation.
“More generation licenses for an additional 1,400MW are being considered by Government putting the country on a good trajectory to eliminate reliance on imports and bring baseload for industrialisation in line with the Nkwe Programme of Action and the Grand Plan for National Transformation.”
Government also said the Eswatini Electricity Company will accelerate internal reforms aimed at improving sustainability and strengthening the country’s electricity supply.
“Additionally, Eswatini Electricity Company will expedite necessary internal reforms aimed at achieving sustainability and energy self sufficiency.”
Dlamini thanked the nation for its patience as government works to stabilise the energy sector and expand domestic power generation.
“On behalf of His Majesty’s Government, I would like to thank the nation for understanding and continued cooperation during this period of transition.”
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