The National Energy Regulator of South Africa (Nersa) has conceded significant errors in its approval of Eskom’s multi-year electricity tariff increases, resulting in a court settlement that will see consumers face substantially higher price hikes than originally announced.
Following an out-of-court settlement with Eskom, which had challenged an estimated R107 billion revenue shortfall in its sixth multi-year price determination (MYPD6), Nersa acknowledged miscalculations that necessitated an upward adjustment of R54 billion (The Citzen).
This means the already implemented 12.74% increase for 2025/2026 will be followed by hikes of 8.76% and 8.83% over the next two financial years.
The revision has sparked widespread criticism from political leaders, unions, and energy analysts. Western Cape Premier Alan Winde called the announcement ‘patently unfair,‘ emphasising the strain on residents already facing a high cost of living. He stated that ‘our poorest residents will suffer the most’ and insisted the decision ‘cannot go unchallenged.’
Energy analyst Chris Yelland described the situation as astounding, questioning why, given Eskom’s history of passing on imprudent costs to consumers, Nersa wasn’t instead working to claw back funds to reduce future tariffs.
The South African Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi warned the increases would deepen energy poverty, force disconnections, and increase operating costs for struggling municipalities. He raised transparency concerns, noting the settlement was reached outside the normal public participation process and called for a full parliamentary inquiry.
The DA also condemned the move, with MP Kevin Mileham calling for Parliament’s portfolio committee on energy to urgently investigate the error. He stated it ‘points to systemic failures within Nersa’s processes’ and underscores the need for a new national electricity pricing policy to prevent such opaque and costly disputes in the future.
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