Tariff Structure

The Eswatini Energy Regulatory Authority (ESERA) has approve an average tariff decrease of 1.31% for the financial years 2021/22 and 2022/23. Within this approval, the domestic tariff will be increase by 3% for this 2-year period per the award and other tariff categories revised downwards accordingly.

 

Type	NON TOU TARRIFS	Facility Change E/Month	Energy Change E/KWh
S10	Lifeline (0-75 KWh)		1.0864
	Lifeline (76-100 KWh)		1.8021
	Lifeline ( > 100 KWh)		3.9492
S1	Domestic		1.8021
S2	General purpose	207.43	2.3009
S3	Small Commercial - Prepayment	207.43	2.3009
S3	Small Commercial - Credit Meter	414.85	2.3009

 

TOU TARRIFS	T1 TOU at MV at HV Network	T2 TOU at MV	T3 TOU at LV	T4 TOU small irrigation < 100 kVA
Facility Charge E/month	5,015.72	2,413.97	1,815.90	1,543.52
Demand E/kVA	155.86	163.28	171.44	149.73
Access Charge E/kVA	58.06	60.03	58.31	54.29
Energy - Low Demand - Peak E/kWh	1.6068	1.6502	1.6792	1.4515
Energy - Low Demand - Standard E/kWh	1.1464	1.1759	1.1956	1.0406
Energy - Low Demand - Off Peak E/kWh	0.9269	0.9497	0.9651	0.8445
Energy - High Demand - Peak E/kWh	4.5496	4.7895	4.8824	4.1502
Energy - High Demand - Standard E/kWh	1.4249	1.4678	1.4962	1.2718
Energy - High Demand - Off Peak E/kWh	0.9369	0.9603	0.9761	0.852

 

Subsidy Framework

This is a support scheme developed by the Authority for the benefit of the Electricity Supply Industry of Eswatini and intends to protect needy households and enhance electricity access at affordable tariffs, which is especially necessary as the industry starts a period of price adjustments to reduce the prevailing cross-subsidies among the various electricity customer categories. This scheme is to be accommodated while ensuring that the average tariff remains at the cost reflective level for the utility as a whole.

Why The Subsidy Framework ?

In 2008, 2013, as well as in 2015, The Southern African Development Community (SADC) Energy Ministers pronounced that tariffs in the region should be cost-reflective by the year 2019. In line with these pronouncements, the Authority and the Utility conducted several studies on the cost of supplying electricity in Eswatini. The latest Cost of Supply study, done in 2018, revealed that the then average domestic tariff was around 41% below the long run marginal cost of supply. Additionally, it revealed that the then tariff structure did not reflect the marginal cost of supply for almost all of the customer categories.

Being alert to the challenges associated with cross-subsidization and in line with Eswatini’s commitments to SADC, the Ministry of Mineral Resources and Energy, through ESERA, initiated to remove cross subsidies among customer categories and bring the electricity tariffs to cost reflective price levels for the different categories of consumers. ESERA, having completed and submitted a Subsidy Framework for Cabinet approval, aimed at protecting Eswatini’s vulnerable population against steep electricity increments that are necessary to achieve cost reflectivity, has implemented a migration plan effective April 2020, along the 2020/21, 2021/22 tariff award. This scheme is to be accommodated while ensuring that the average tariff remains at the cost reflective level for the utility as a whole.

What Will The Subsidy Framework Do ?

The main objective of the Subsidy Framework is to shield customers who cannot cope with cost reflective tariffs high electricity costs, as tariffs migrate towards cost reflectivity. It is designed to remove cross subsidies among customer categories, in order to bring the Eswatini Electricity Supply Industry to cost reflective levels for the different categories of consumers, to send correct signals to consumers in terms of their consumption levels and behavior and to develop a subsidy scheme for poor households to protect them from tariff increases and to enhance electricity access at affordable rates.

This framework ensures to cater and cushion all domestic customers. It introduces a new tariff category called the life line tariff. It is designed to cushion and provide a discount to vulnerable groups including the elderly, orphaned and vulnerable children and qualifying low-income customers.

Life Line Inclining — Block Tariff (IBT) Structure

This is a new type of tariff which has been included in the structure to cater for domestic customers. The life line tariff is designed to cushion and provide a discount to vulnerable groups including the elderly, orphaned and vulnerable children and qualifying low-income customers. This type of tariff is an inclining block tariff (IBT) which means the applicable rates will differ according to the level of consumption. The IBT has 3 levels, all influenced by the amount of monthly consumption for that particular customer’s household. Customers will have to apply to be a part of this tariff structure where they will have to meet a set selection criterion to qualify. The selection criteria is based on the customer’s economic status and their level of monthly consumption. It is worth highlighting that during the public hearings conducted by the authority, this was a consistent area of concern raised by customers, and in addressing the issue, the life line tariff was designed.

Who Qualifies ?

For customers to be eligible, they must meet both the criteria set below:

1. Economic status (household income not above E3,500)
2. Average monthly consumption level (not above 75 kWh or 75 units)

The Application Process ?

The admission process shall be on continuous basis and on first come first save basis. The process shall continue so long as there is still a room for additional beneficiaries. Beneficiaries will be registered by the utility, who will also re-program their purchasing system to allow the customer to purchase according to their life-line category tariff. The steps for applying are as follows:

1. Get an application form from any EEC service center. If you’re unable to make way to the service center, you can get a form from your local umgcuguteli or community development officers.
2. Fill in the form and collect all requested supporting documents (specified in the form)
3. Submit the form at any EEC service center or your local umgcugcuteli/community development officer.
4. Await response from EEC through your registered contact details (registered in the application form).

Note: Whilst at its piloting stage, the subsidy rollout program will have a limited number of beneficiaries to be admitted.

Selecting Beneficiaries

The qualifying criteria (E3500 household income & 75kWh 12-months historical consumption) will be applied simultaneously by the utility for consideration. The utility shall use this as a first step in screening applications and any application that does not meet the criteria will be discarded.

• Household income can be proved by one of the following means:
  1. Salary advise/ Payslip accompanied by a valid letter of employment (in company letterheads or with company stamp)
  2. An authorised form duly completed by a community authority (e.g. batfutfukisi, bagcugcuteli, bucopho etc), with a local authority stamp.
  3. Any other proof which has the authentication of a statutory body incorporated in Eswatini (e.g. DPM’s office)

Note: If in the future, a customer is found to have misrepresented facts, legal proceedings shall be instituted against him/her. Based on the tariff level for a particular period, and based on the household consumption basket, there will be a set level of household monthly income to be considered during the application and selection process.

What happens to customers who don’t qualify for the Life-Line Program?

For customers who do not meet the set selection criteria to qualify for the life-line tariff, the same domestic tariff that has been in operation will apply to them. They will continue purchasing electricity at the set amount of E1.80 per kWh.

2020/21, 2021/22 Domestic – Lifeline Rates and Bill Comparison

Based on the tariff adjustment approval for 2020/21 and 2021/22, the tariffs for domestic and Life line categories, and their corresponding bills at various levels shall be as follows:

2021/22
		Applicable Tariff
Range	No. of Units	Domestic	Life - Line
0 - 75 kWh	75	1.80	1.08
76 - 100 kWh	25	1.80	1.88
100 <	25	1.80	3.96
		Cummulative Bill
Range	No. of Units	Domestic	Life - Line
0 - 75 kWh	75	135.00	81.00
76 - 100 kWh	100	180.00	126.00
100 <	125	225.00	225.00

 

Application Form

Application Process

Interested customers may apply to enter the life line category. Applications are made to the Utility (EEC) as per the following process:

Process Done By The Utility (EEC)

More On Tariffs

Tariff Name	File Size	Download Tariff
Cost of Supply Study Report	1.895 MB	Click Here To Download Tariff
Eswatini Electricity Company Tariff Review Application for 2020/2021 and 2021/2022	2.137 MB	Click Here To Download Tariff
Electricity Tariff Schedule For 2017/2018	0.264 MB	Click Here To Download Tariff
EEC Tariff Application Review For 2017/2018	1.486 MB	Click Here To Download Tariff
Notice Of EEC Tariff Schedule For 2016/2017	1.486 MB	Click Here To Download Tariff