Procurement of a Consultant for Cost of Supply Study and Tariff Redesign

ESWATINI ELECTRICITY COMPANY

Request for Expression of Interest (REOI)

Consultancy Services

For the

COST OF SUPPLY STUDY AND TARIFF REDESIGN

Request for Expression of Interest (REOI)

(CONSULTING SERVICES – FIRMS SELECTION)

Country: Kingdom of Eswatini

Name of Project: Accelerating Sustainable and Clean Energy Access Transformation in Eswatini (ASCENT Eswatini) Project

Grant No: TF0C7150

Assignment Title: Consulting Services for Cost of Supply Study and Tariff Redesign for the Eswatini Electricity Company

Reference No. SZ-ECC-548687-CS-QCBS

• The Government of the Kingdom of Eswatini (GoKE) has received financing from the World Bank toward the cost of the Accelerating Sustainable and Clean Energy Access Transformation in Eswatini (ASCENT Eswatini) and intends to apply part of the proceeds for consulting services.

• The consulting services (“the Services”) include:

• Alignment of Time‑of‑Use (TOU) Tariff Structure – align the electricity import Time‑of‑Use (TOU) tariff structure with the Utility’s existing TOU customer tariff categories, in order to, ensure cost reflectivity, and improve revenue adequacy within the current tariff review cycle. This workstream shall be undertaken as a stand‑alone and priority assignment, with outputs capable of implementation in the immediate tariff year, while remaining consistent with the broader LRMC‑based Cost of Supply Study.

• Cost of Supply Study (LRMC-Based) - Determine the true cost of supplying electricity across all customer categories using the LRMC methodology covering

• Cost Allocation across utility segments

• Determination of marginal cost parameters

• Identification of cross subsidies and inefficiencies

• Establishment of the utility’s revenue requirement

• Etc.

• Tariff Redesign and Restructuring - develop a comprehensive tariff structure that supports cost reflectivity, fairness, financial sustainability, and integration of emerging sector developments. The tariff design must align with the outcomes of the LRMC based Cost of Supply Study to incorporate:

• Cost Reflectivity

• Equity and Affordability

• Capacity Based Pricing

• Renewable Energy Integration

• Promote efficient energy use

• Reflect capacity and energy costs

• Discourage poor power factor by customers

• Address declining revenues due to market reforms (i.e. Embedded generation, Wheeling, Customer Contestability, etc.)

• A transition pathway to migrate from current tariffs to fully cost-reflective tariffs, with mitigations for vulnerable customers

• Ancillary services pricing for intermittent renewable energy

• Feed-in tariffs (FiTs) for embedded generation

• Mechanisms for capacity cost recovery

The Terms of Reference (TOR) for the primary procurement stage for the assignment

can be found at the following website: https://www.eec.co.sz/tenders/

• Interested consultants must provide information demonstrating that they have the required qualifications and relevant experience to perform all the services. The following documents shall also be submitted along with the EOI applications by all the consulting firms including each member of JV firms:

•

• Copies of certificates of incorporation/registration of the consulting firms

• Financial information of the firm for the last 5 years

• Corporate profile of the firm with quality assurance plan, ISO 9001, information on organizational strength (Organization structure, number of permanent professional staff and their expertise, qualifications and number of total staff), availability of licensed software and tools for the execution of the assignment and any other necessary information deemed appropriate.

• The short-listing criteria are: The Consulting firm/s must have at least 10 years of proven consulting experience in Cost of Supply Studies (CoSS) and tariff design/restructuring, particularly using Long Run Marginal Cost (LRMC) methodologies with a strong portfolio of similar assignments undertaken for electricity utilities or regulators, preferably in Sub Saharan Africa or comparable developing power utilities in a small to medium sized, import dependent or vertically integrated utility. The Consulting firm must have a demonstrable proven track record of (i) at three similar projects in the last five years and (ii) at least one similar project in the region or developing countries. In order to substantiate the aforementioned consulting jobs/contracts, the Consultant shall submit the End User Certificate from clients depicting main scope of the contract. Incomplete Consulting Contracts will not be taken into account and hence will not be evaluated. Additionally, qualifications and relevant experience of the key staff in similar assignments, including demonstrated expertise in similar assignments.

• Consultants may associate with other consultants to enhance their qualifications. Where firms are associating, the submission must include verifiable evidence of association from all the parties. Experience and qualifications of parent or subsidiary of the firm will not be considered for evaluation.

• All submittal from the consulting firms shall be in English language.

• The attention of interested Consultants is drawn to paragraphs 3.14 to 3.17 of the fifth edition of the World Bank Procurement Regulations for IPF Borrowers dated September 2023 setting forth the World Bank’s policy on conflict of interest.

• The Consultant(s) shall be evaluated and shortlisted based on the general qualifications, experience and capability. Shortlisted Consultants will subsequently have their RFPs evaluated in accordance with the Quality and Cost Based (QCBS) selection method as per the fifth edition of Procurement Regulations for IPF Borrowers dated September 2023.

• Interested eligible consultants may obtain further information by sending an email to the address below or visiting during office hours from 10.00 to 16.00 hrs.

• Expression of interest must be delivered in a written form (in person/by mail/ by e-mail) to the address below no later than 12.00 hrs. CAT on 29 May 2026.

The Procurement Manager

ASCENT Eswatini Project

Eswatini Electricity Company

Eluvatsini House, Mhlambanyatsi Road,

Mbabane, Kingdom of Eswatini

Tel: +268 2409 4165

Email: [email protected]

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