NERSA to probe shocking electricity charges

The National Energy Regulator of South Africa (NERSA) has officially initiated a comprehensive market inquiry into rising electricity costs in Mzansi.

And they have put electricity distributors, including Eskom and various municipalities, on notice ahead of a public hearing in November. 

In a statement released at the weekend, Charles Hlebela, NERSA’s Head of Communications said: “This market inquiry ... aims to reveal how the distributors formulated the charges, which resulted in substantially high increases being added to the approved 12.74% tariff increase for Eskom, as well as assess the impact of these charges on different customer segments, and evaluate their alignment with approved tariff methodologies. 

NERSA’s full-time regulator member responsible for Electricity Regulation, Nomfundo Maseti, highlighted the regulator’s commitment to balancing consumer protection and sector viability. 

She stated: “By engaging stakeholders and rigorously interrogating the basis of these charges, we aim to deliver regulatory guidance that promotes fairness, cost-reflectivity, and stability in the electricity market,” she stated.

NERSA mentioned that Stakeholders are invited to submit written representations and supporting evidence within 30 days of the Terms of Reference (TOR) publication on 25 September, with the closing date set for 25 October 2025. 

A public hearing is scheduled for November 17, 2025, to ensure procedural fairness and adherence to the Promotion of Administrative Justice Act. 

The Market Inquiry Report will be drafted in December 2025, with the final report slated for early 2026.