It is essential to note that licencing for Independent Power Producers (IPP) will only be conducted after the (IPP) has been awarded a tender through the competitive tendering process conducted by the Authority. What Are the Required documents when applying for an exemption or license for electricity generation?
Generating for own use: electricity generators for own use are exempted from holding a generation licence, however, they must apply for an exemption on condition the generation capacity for the facility is 100KWh or above. The requirements include:
Feeding to the grid: An application for electricity generation and supply will be required. The set of documents required for the generation license can be found here
The Authority considers an application for the issue, renewal, transfer or revocation of a licence within 120 days from the publication of an advertisement.
The Authority is in the process of developing a Small-Scale Embedded Generation framework which will guide the net metering activities. It should be noted that feeding back to the grid is not allowed.
The Authority is in the process of developing a wheeling framework which will be the guiding instrument for wheeling activities. Stakeholders will soon be consulted on the framework.
The installation ownership can be transferred to the new users, their consumption be monitored over a period not less than three months to ensure that their consumption is now aligned with the Subsidy Framework. Upon satisfaction that their consumption pattern is now aligned with the Subsidy Framework requirement, they can apply to be in the Life Line tariff.
Customers without pay slip can fill in an application form and present it to local authorities for recommendation to be enrolled in the Life Line tariff. The authorized official of the local authority will sign-off and stamp the form, and provide reason for recommendation.
Currently all domestic customers pay a subsidized tariff. The business customers are paying the subsidy. In past consultations, the business community was willing to continue subsidizing customers, but they emphasized on targeted subsidy as a means to reduce the total subsidy burden. This program is therefore part of consolidated efforts to reduce the overall subsidy paid by the business customers.
People without electricity connection should follow the normal application procedure for applying for an installation. Upon getting a connection, they can apply for admission to the Life Line tariff after three months of connection, following the process outlined in the subsidy application template.
The current program is focused on domestic or residential customers. However, the Authority continuously endeavor to make electricity as affordable as possible to customers, without causing any negative consequences on the entire electricity supply industry. The Authority therefore does not rule out the possibility of assistance to other sectors in the future.
In cases where a customer exceeds the 75kWh threshold in a calendar month, the customer will be allowed to purchase a second batch of 25 units at a tariff equivalent to the normal domestic tariff. Any further purchase within that month will be charged at the premium block. In the next month, the customer will start on a clean slate once again.
The Life Line block is designed for the most vulnerable households. A study conducted and benchmarking regionally revealed that a vulnerable household can survive on 50 kWh for the basic electricity needs. The penalty charge was deliberately set high to discourage anyone who tries to beat they system by fraudulent means. It is designed to allow the customer bill to break-even with the domestic tariff at 125 kWh.
The intended applicant can apply for change of ownership at the EEC service center. The applicant will be required to present his national identification card and a deed-of-sale in cases where s/he purchased the house or a death certificate of the previous owner in cases where s/he inherited the house.
The EEC and ESERA will continue educating people on how the new Life Line tariff works, so that people make informed decisions. The current metering technology cannot handle cases of bulk purchase, hence customers purchasing on bulk would be adversely affected.
Whereas EEC system data can reflect the pattern of consumption, it cannot prove the income status of the household, which is a compulsory criterion for the life line tariff. Furthermore, customers need to agree to terms and conditions, hence automatic admission can be legally challenged.
Both EEC and ESERA will continue educating customers through available platforms, including community visits where possible, on electricity matters, including the new Life Line tariff.
One key requirement for application is that the installation should reflect the intended beneficiary. Customers will need to ensure that electricity installation reflects their name and can apply to EEC for change of ownership, upon providing the necessary documents, including a lease agreement.
Customers who feel that they no longer require to be in the Life line category can apply for a change in EEC service centers. The change can only be effective in the next calendar month and customers would need to re-apply in the future if they wish to return to the life line tariff.
All forms should be return to EEC service centers, where terms and conditions will be read to customers, and if they agree, they would sign and EEC employee will withness.
The Subsidy Framework is strictly focused on electricity tariffs. The Authority is exploring means to assist customers with other electricity related matters.
The current program is focused on residential electricity consumption. The Authority will continue exploring means of assisting in other sectors of the society.
The 75 kWh was reached after a thorough study and the Subsidy Framework was promulgated into an enforceable regulatory instrument. Changing the 75 kWh will require an evidence-based justification and a change in the regulatory instrument, which may take time.
The Subsidy Framework cannot be applied across the board as it is punitive at high consumption levels, hence the need for customers to apply and agree to the terms and conditions. Furthermore, some customers are affording, hence they are not qualifying for a subsidized tariff.
People who feel they meet the qualification criteria will take the initiative to apply. Local authorities will only assist people by recommending them and signing-off their application forms.
Customers are welcome to opt out of the program if it is no longer beneficiary to be in. They will apply at EEC service centers and the normal domestic tariff will be applicable in the next calendar month.
The gross pay net of any statutory deduction (i.e., tax and pension contribution), will be considered in determining income level. Deductions such as loan repayments and garnishes should be added back when determining household income.
The Authority’s mandate as outlined in the Electricity Act and the Energy Regulatory Act limits the powers and functions of the Authority to electricity and energy related issues. We therefore appeal with relevant statutory bodies at community and national level to help Swazis who may need assistance outside the mandate of ESERA and EEC.
The facility charge is one way of recovering the cost of providing a service to the customer, in particular the costs that is independent of electricity usage. Recovering cost of service through energy charge only present a risk in cases where electricity consumption fall short of projections.
For anyone to be a proxy of another customer, s/he must present an affidavit sworn by the person represented, as well as a certified copy of national ID for the representee.
No. The current metering and billing system cannot handle transactions of such complexity. Technology permitting, such options can be explored in the future.
Customers who cannot present a recommendation by local authorities are welcomed to apply. These customers will have to provide a pay slip in company letterheads, or a letter from the employer in letterheads that specifies the gross pay, statutory deductions and net pay after statutory deductions. It is necessary that the installation number reflects their name. A tenant taking over a flat will also need to register the installation in his/ her name.
The Lifeline tariff is strictly for the most vulnerable households. Without the limit on the number of subsidized units and without the control block, the system will be vulnerable to exploitation by affording customers.
All domestic rates are currently subsidized by the business customers. This program aims at redirecting subsidy to the customers who need it the most. It is unlikely that other domestic customers would contribute any subsidy in the foreseeable future.
The objective of the Subsidy Framework is to reach out to the most vulnerable customers. Under perfect conditions, distribution of beneficiaries will reflect income distribution. However, during the migration period, efforts would be made to ensure a wide spread of beneficiaries.
The subsidy contributing customers (business customers) have decried the high cost of subsidy, in particular in light of affordability by some domestic customers. They made a plea that subsidy be targeted to the customers who need it the most.
The EEC will accept recommendations made by recognized authorities. This is not only limited to the traditional community structures. Where royal kraals (imiphakatsi) are not accessible, customers can seek help from tinkhundla centers, through bucopho and tindvuna tetinkhundla.
Information that can be extracted on EEC’s data base can provide evidence of consumption levels and patterns, but not household income. Household income is a primary qualifying criterion for the Life Line tariff; hence EEC’s database cannot be of much assistance.