Eswatini PM orders assessment of E406m electricity loss

Prime Minister Russell Mmiso Dlamini has ordered the Eswatini Electricity Company (EEC) Board to conduct a comprehensive assessment of the utility’s financial sustainability and operational efficiency. This follows an operating loss of approximately E406 million for the financial year ended March 31, 2026. The assessment aims to find the causes of financial difficulties and identify ways to reduce costs for consumers.

Dlamini confirmed the losses in Parliament, stating that EEC recorded an operating loss of E406 million and a net loss of about E231 million. He cited high imported electricity costs, tariff under-recoveries, inflation, and other operating expenses as contributing factors. The country relies on imported electricity for about 70 per cent of its consumption, creating a significant financial burden.

The prime minister explained that EEC faced a mismatch between rising import costs and granted tariff increases. While EEC received an average tariff increase of eight per cent in 2025/26, its main supplier raised tariffs by approximately 13.24 per cent. This under-recovery contributed to the company’s financial problems, necessitating government subsidies to prevent further electricity price hikes.

Why it mattersEmaSwati face rising electricity costs due to the Eswatini Electricity Company's financial difficulties and reliance on expensive imports.

Sources