The National Energy Regulator of South Africa (Nersa) has approved a revised tariff increase for Eskom, giving the power utility a 12.74% hike for the 2025/26 financial year, followed by 5.36% and 6.19% increases for 2026/27 and 2027/28, respectively, Cape {town} Etc reports.
This decision comes after extensive regulatory processes, including public hearings and consultations with stakeholders.
Initially, Eskom had submitted a revenue application requesting substantial tariff increases of 36.15%, 11.81%, and 9.10% for the next three years, amounting to R445 billion, R495 billion, and R536 billion.
However, Nersa ultimately approved lower increases, citing its efforts to balance Eskom’s financial sustainability with the affordability concerns of consumers.
In a statement, Nersa noted the importance of this decision for both Eskom and South Africa’s economy. ‘This decision, which is substantially lower than Eskom’s application, will have a positive impact on the South African economy, and a significantly lower impact on consumers,’ the regulator said.
Stakeholder feedback, including over 1 200 written comments, raised concerns about the affordability of electricity, Eskom’s performance, and the impact of municipal debt on the energy sector. These concerns were addressed through further deliberation and the regulatory process.
The energy regulator acknowledged the ongoing challenges faced by consumers, emphasising the importance of a balanced approach to maintaining affordable electricity while ensuring Eskom’s financial health. Nersa’s Chair, Thembani Bukula, expressed appreciation for the contributions of all stakeholders and said, ‘We believe that this decision strikes a necessary balance between the needs of Eskom and the financial realities of consumers.’
Looking forward, Nersa believes that this decision will help to foster increased investor confidence, potentially boosting production and economic growth, which would, in turn, drive higher electricity demand in the coming years.
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