Nersa approves 12.7% electricity tariff hike for Eskom

The National Energy Regulator of South Africa (Nersa) has approved a 12.7% electricity tariff increase for Eskom.

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.

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Eskom initially requested a 36.15% increase for April 2025, along with additional hikes of 11.81% for 2026 and 9.10% for 2027.

This follows a nearly 13% increase implemented in April 2023.

The approved increase has stirred controversy, with the Democratic Alliance (DA) launching a petition to oppose the tariff hikes.

Eskom gets electricity tariff increase from Nersa

On Thursday, the DA made a final plea for Nersa to reject the proposed 36% increase.

However, Nersa approved a 12.7% hike for 2025, alongside smaller adjustments of 5.36% for 2026 and 6.19% for 2027.

“We received the application from Eskom on the 16th of August. It was submitted in three parts,” Nersa chairperson Thembani Bukula said during a media briefing.

Bukula detailed that the percentage increases sought by Eskom amounted to revenue requests of R446 billion in 2025, R495 billion in 2026, and R537 billion in 2027.

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He indicated that public hearings expressed widespread concerns about the potential impact of the increases on both households and businesses.

“Domestic customers stressed the fact that if these prices are approved, they then have to choose between buying food or electricity, while businesses on the other side made it clear that if these increases are approved a lot of them would be forced to close their businesses,” Bukula said.

Stakeholders also highlighted several pressing issues, including municipal debt owed to Eskom, the rising cost of coal, the reliance on costly open-cycle gas turbines powered by diesel, and the lack of job opportunities in the current economic climate.

Watch the briefing below:

Nersa balanced Eskom’s sustainability and affordability

Taking these concerns into account, Nersa adjusted Eskom’s allowable revenue to R384 billion for 2025, R409 billion for 2026, and R435 billion for 2027.

Bukula emphasised the challenges of balancing competing priorities in regulating the electricity industry.

“Our challenge in regulating the electricity industry has always and still remains this delicate balancing of the often conflicting requirements of all of the stakeholders.

“We are required to ensure that Eskom is sustainable within the short and long-term. At the same time, we are required to ensure that the electricity services that Eskom provides are affordable.

“This is never an easy task. Inevitably, it is also influenced not just by our methodologies and rules, but by the greater economic environment both locally and internationally,” he explained.

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