EEC STRENGTHENS TIES WITH GOVERNMENT TO BOOST ENERGY SECURITY

News

BY TANDZILE DLAMINI

MBABANE – Eswatini Electricity Company (EEC) Managing Director Ernest Sipho Mkhonta has taken steps to strengthen cooperation on national energy issues by hosting a high-level meeting with Principal Secretaries and senior government officials.

The engagement is part of EEC’s ongoing stakeholder outreach efforts, focused on enhancing collaboration, promoting operational transparency, and advancing the country’s energy resilience.

Mkhonta highlighted key aspects of EEC’s corporate strategy, generation projects, challenges, and opportunities shaping the company’s path forward. He emphasised that stakeholder collaboration remains central to ensuring reliable and sustainable electricity for all emaSwati.

“As a company, we are operating in austerity mode. This requires us to carefully manage our costs while still fulfilling our mandate to provide reliable electricity supply to the nation,” said Mkhonta.

Mkhonta shared that EEC’s corporate strategy centres on: Operational excellence, revenue sustainability, social impact and workplace safety. He noted that import and maintenance costs are the primary financial drivers for the company, with other expenses generally aligned with national inflation rates.

A critical point raised was the imbalance between domestic and business electricity consumers. With approximately 277,000 domestic customers contributing 35% of EEC’s revenue, they receive a 40% subsidy, effectively supported by business users. This, according to the MD, explains recent efforts by the energy regulator to gradually implement cost-reflective tariffs, particularly for business customers.

Currently, EEC generates only 30% of the national electricity demand, with: 60MW from hydro and 10MW from solar.The rest is imported through agreements with Eskom (South Africa), EDM (Mozambique), BPC (Botswana), and USL.

To address this gap, several generation projects are in progress: Lower Maguga Hydro Plant: 23MW capacity, Maguga Extension: Adds 10MW, Geothermal Project: Exploratory studies show promise; drilling phase needs approx. E220 million and Lubhuku Coal Thermal Plant: Targeted 300MW+ capacity by 2030.

EEC is advancing the Lavumisa–Nhlangano 132kV transmission line, a core component of the Network Reinforcement and Access Project (NRAP). Once operational in August 2025, the line will: Improve electricity supply quality in Shiselweni, Reduce outages and Foster a stable environment for commercial and industrial development.

Mkhonta acknowledged the risks and challenges affecting the utility: currency fluctuations, delays from contractors and Independent Power Producers (IPPs) and Infrastructure damage due to vandalism, copper theft, and severe weather.Despite these challenges, EEC sees opportunities in increased domestic generation and potential future power exports, which would improve energy self-sufficiency.

The MD reaffirmed EEC’s commitment to load management, particularly through the Power Shift Campaign. This campaign urges consumers to use energy-intensive appliances during off-peak hours, supporting grid stability and long-term sustainability.

(Courtesy Pics)