MBABANE – ECC, together with ESERA, has given a lifeline opportunity to Emaswati earning below E3500 and consume at least 75 units a month.
If you think you qualify for this benefit, read this article carefully. Who knows, you might be amount the 20 000 customers that will benefit soon.
A programme known as Inclining Block Tariff was today (Wednesday) launched and it seeks to benefit low-income customers as one of the poverty alleviation interventions by the company. In fact, the programme is aimed at cushioning lower usage customers against high prices. ECC has disclosed that the essence of this tariff structure is that the more you use electricity, the higher you pay.
To guard this, ECC has stated that customers on inclining block tariff will get punitive charges for going beyond the lower blocks.
EEC Acting Managing Director Ernest Mkhonta stated during the launch that the company has introduced three inclining blocks for S10 customers. In the first block, customers will pay E1.08 for the first 75 units with the maximum charge of E81. 48 per month.
Under block 2, for the next 25 units (including the 100 unit), the client will pay E1.80 per unit and the maximum amount that can be paid being E45.05.
However, for block 3, any unit bought above 100 will cost the customers E3.94 per unit.
“It should be noted that the first 100 kwh will cost the customer an amount of E126.53 regardless of when they buy during the month,” Mkhonta said.
He explained that for a customer to be eligible for the programme, he/she must meet both the criteria set in the application form.
The criteria include:
- Economic status (households’ income not above E3500 per month
- Average monthly consumption level (not above 75kwh or 75 units)
Mkhonta disclosed that for one to qualify, household income can be proved through salary advise/payslip accompanied by a valid letter of employment. Again, an authorised form duly completed by a community authority (e.g batfutfukisi, bagcugcuteli, bucopho etc) with a local stamp authority. He said any other proof which has a backing of a statutory body incorporated in Eswatini, the DPM’s office.
Mkhonta stated that forms will be accepted as from Monday 9 August 2021 with the target to start the program in September 1, 2021.
For now, ECC is ready to start with 20 000 customers and first come first serve.
Meanwhile, Simphiwe Khumalo, who was representing ESERA Chief Executive Officer, said this support scheme was developed to cushion vulnerable customers from high electricity costs as the industry migrates to cost effective tariffs. He stated that the subsidy framework allow the reduction of prevailing cross-subsidies across tariff categories, which have become a burden to business customers, making the cost of doing business unfavourable.
“It is designed to improve the cost of doing business in Eswatini and make local companies more competitive in regional and international markets,” he said. He explained that the tariff is meant for customers to access electricity for very basic efficient use with minimal consumption.
“Customers who do not qualify for lifeline tariff will continue to be charged at the prevailing domestic rate,” he said.
Kumalo disclosed that in 2018 customer data showed over 41 000 customers consumed less than 50 kwh per month.
“However, target monthly consumption was increased to 75 kwh following public consultations,” he said.
Application Process
The appraisal process shall be as follows:
Stage1 – 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 Including Block Tariff.
Stage 4 – Feedback is given to applicants. Those that are not successful shall receive reasons for job-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.
