INTRODUCTION OF ELECTRICITY SUBSIDY & APPLICATION PROCESS

Eswatini Electricity Company (EEC) is introducing an inclining block pricing scheme on the S10 Life Line tariff. The S10 tariff was created for low income customers as a poverty alleviation intervention. The objective of the Inclining Block Tariff (IBT) is to cushion lower usage customers against high prices.

Inclining Block Tariffs split the electricity price into several consumption blocks that attract different prices. The first block of electricity is at the lowest price. As the customer purchase more electricity during the month, the electricity bought will eventually fall into block 2 (depending on limits) which is a bit more expensive. The process repeats automatically as the customer purchases further electricity to move into other blocks. At the end of the month the history is reset, and the customer will again start the next month from block 1.

The essence of this tariff structure is that the more you use, the higher you pay. Customers on inclining block tariff get punitive charges for going beyond the lower blocks and therefore are advised to only purchase electricity units that they will use in the current month.

The process to move from the one block to the next is automatic and depends only on the accumulated month sum of units purchased. The movement to the next block is not affected whether the purchases are spread over many transactions or if all the electricity is part of one transaction.

EEC is introducing 3 inclining blocks for S10 customers. These are;

Block 1 (0-75) kWh: A client pays E1.0864 for the first 75 units. The maximum amount in this first block is E81.48

Block 2 (76-100) kWh: For the next 25 units (including the 100th unit), the client pays an amount of E1.8021 per unit and the maximum amount that can be paid in this block is E45.05

Block 3 (> 100) kWh: Any units bought above 100 will cost the customers E3.9491 per unit

It should be noted that the first 100kwh will cost the customer an amount of E126.53 regardless of when they buy during the month.

APPLICATION PROCESS:

Filling of Application Forms

The applicant fills in an application form providing information which shall, among others, include:

  1. Particulars of applicant
  2. Household socio-economic analysis
  3. Local authority recommendations
  • The Application Forms can be collected from all Tinkhundla centres for the initial launch of the new Inclining Block Tariff, thereafter they will be available at all EEC Service Centres.
  • Upon completion, the Application Form is taken to Umphakatsi, Inkhundla or Zone Leader for vetting where they append their signature and stamp.
  • The Form with all the necessary attachments is submitted to any EEC Service Centre.
  • Applicants should ensure that before submission, attachments are included as guided in the Electricity Subsidy Application form.
  • The admission process shall be on a continuous basis and on first-come-first serve basis. The process shall continue so long as there is still room for additional beneficiaries.

Subsidy Application Process

The appraisal process shall be as follows:

Stage 1 – EEC Pre-screening to ensure; compliance, eligibility and feasibility.

Stage 2 – Qualifying applications are referred to the intermediary for viability analysis including site visit.

Stage 3 – Viable applications are recommended for subsidy where EEC shall approve inclusion into Inclining Block Tariff

Stage 4 – Feedback is given to applicants. Those that are not successful shall receive reasons for non-approval and they will be assisted for possible consideration in the next application period.

The above process, as well as the terms and conditions of the Inclining Block Tariff, are subject to review in due course in response to risk assessments and economic outlook.

The Selection Criteria

For customers to be eligible, they must meet both the criteria set in the Application Form, mainly the following:

  1. Economic status (households income not above E3,500/month)

  2. Average monthly consumption level (not above 75kWh or 75 units) 

 Household income can be proved by one of the following means:

  • Salary advise/ Payslip accompanied by a valid letter of employment (in company letterheads or with company stamp)
  • An authorised form duly completed by a community authority (e.g. batfutfukisi, bagcugcuteli, bucopho etc), with a local authority stamp.
  • Any other proof which has a backing of a statutory body incorporated in Eswatini (e.g. DPM’s office)

Note: Misrepresentation of facts may lead to legal proceedings being instituted against an applicant.

Find Us

Physical Address:
Eluvatsini House,
Mhlambanyatsi Road,
Mbabane

Coordinates:
Latitude: -26.335095397
Longitude: 31.13400936

PO Box 258
Mbabane, Swaziland

Tel: (00268) 2 409 4000

Fax: (00268) 2 404 2335

Email: info@sec.co.sz