ESKOM TO HIKE PRICES AGAIN
R54bn 'mistake' to be passed on consumers
Nersa is facing mounting pressure over a R54 billion settlement reached with Eskom for which consumers are expected to pay.
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PRESSURE is mounting on the National Energy Regulator of South Africa (Nersa) to explain a helse data input error that will see mense pay more for electricity in the next years.
Additional tariff hikes of 3.4 percent in 2026/27 and 2.64 percent in 2027/28 are expected to only intensify financial strain, compounding the increases already approved.
The South African Local Government Association (Salga) has weighed that the new electricity increases risk pushing many households “further into hardship and deepening the crisis of affordability”. For municipalities, they said “the fiscal risks are severe”.
Eskom was granted approved revenues of R384.6 billion (12.74 percent increase) for 2025/26, R409.5 billion (5.36 percent ) for 2026/27, and R436.9 billion (6.19 percent) for 2027/28.
However, on 2 July, Eskom filed a judicial review to challenge the Energy Regulator’s decision, citing a R107 billion revenue shortfall between its application and the approved amounts.
For 2026/27, the additional increase will be 3.4 percent , resulting in a price increase of 8.76 percent . For the 2027/28 FY, the additional increase will be 2.64 percent, resulting in a price increase of 8.83%.
SALGA president Bheke Stofile said: “These tariff hikes are not just numbers on a page, they risk pushing households into deeper poverty, crippling municipal finances, and widening inequality."
Salga said while it recognised the urgent financial challenges Eskom faces, “passing the cost of mismanagement, historic inefficiencies, and policy delays onto consumers cannot be the solution”.
According to Nersa, Eskom’s judicial review application was assessed for both legal validity and its potential impact on consumers and the broader economy. While NERSA ultimately decided not to oppose the review based on legal advice and public interest considerations, “this decision did not imply acceptance of all the reliefs Eskom requested in its review application”.
DA spokesperson for Electricity and Energy Kevin Mileham said they wrote to Nersa, for a “full, public explanation for the catastrophic R54 billion error made in Eskom’s recent tariff determination”.
He said they also requested the chairperson of Parliament's Portfolio Committee on Energy and Electricity to convene an inquiry into NERSA's internal processes and its fitness to regulate the energy sector.