South Africa's National Energy Regulator (Nersa) has approved a 12.7% electricity tariff increase for Eskom for the 2025/2026 financial year, down from Eskom's initial request of 36.15%. The decision, part of Eskom's multi-year price determination (MYPD6) revenue application, also includes smaller increases of 5.36% for 2026 and 6.19% for 2027. Nersa's approval comes after public hearings revealed widespread concerns about the potential impact of the increases on both households and businesses.
The National Energy Regulator of South Africa ( Nersa ) has approved a 12.7% electricity tariff increase for Eskom for the 2025/2026 financial year. This decision, announced on Thursday, forms part of Eskom ’s sixth multi-year price determination ( MYPD6 ) revenue application, which outlines tariff adjustments for the 2025/2026, 2026/2027, and 2027/2028 financial years. However, Nersa approved smaller adjustments of 5.36% for 2026 and 6.19% for 2027.
Nersa chairperson Thembani Bukula said during a media briefing that Eskom initially requested a 36.15% tariff increase for 2025, along with increases of 5.36% and 6.19% for 2026 and 2027, respectively. These increases, amounting to revenue requests of R446 billion in 2025, R495 billion in 2026, and R537 billion in 2027, sparked widespread concerns from the public during hearings. Domestic customers expressed fears of choosing between buying food or electricity, while businesses warned of potential closures due to the impact on their operating costs. Stakeholders also highlighted issues like municipal debt owed to Eskom, rising coal costs, reliance on expensive open-cycle gas turbines, and a lack of job opportunities. Considering these concerns, Nersa adjusted Eskom’s allowable revenue to R384 billion for 2025, R409 billion for 2026, and R435 billion for 2027. Bukula emphasized the difficulty of balancing competing priorities in regulating the electricity industry, stating that Nersa must ensure both Eskom's long-term sustainability and the affordability of electricity services for consumers. He acknowledged that the task is influenced by both internal methodologies and the broader economic environment both domestically and globally
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