Power play? Nersa’s tariff hike sparks political fury

The National Energy Regulator of South Africa’s (Nersa) approval of electricity tariff hikes has sparked a backlash among some political parties.

Nersa announced the tariff increases on Thursday, building on their previous 4% increase.

The energy regulator recognises consumers’ challenges and the importance of ensuring that electricity remains affordable while securing Eskom’s financial sustainability.

ALSO READ: Nersa approves 12.7% electricity tariff hike for Eskom

Minister Ramokgopa welcomed Nersa’s approval

According to Nersa, increases include 12.7% for the 2025/26 financial year, followed by further hikes of 5.36% for 2026/27 and 6.19% for 2027/28.

The Ministry of Electricity and Energy welcomed the tariff increase, stating that Nersa is fulfilling its mandate to ensure electricity prices balance Eskom‘s financial sustainability.

“We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and business, helping stabilise the broader economic environment,” Minister Ramokgopa added.

ALSO READ: Eskom proposes further tariff restructuring to ensure ‘transparency and fairness’

DA and EFF reject the increase

However, the DA and EFF rejected the approval of the increase.

DA spokesperson on electricity and energy Kevin Mileham stated that though the increase is lower than the 40% Eskom had applied for, it is three times the national inflation rate.

“[The increase] will put massive additional pressure on the prices of goods and services across the spectrum.

“A tariff hike of this magnitude undoes the economic progress and stability of the past six months,” he added.

ALSO READ: Eskom reaches R43 million settlement with PwC over controversial contract

In addition, the EFF said this decision is yet another assault on the working class and poor, who are already grappling with relentless economic hardships.

“This persistent escalation is proof that the ruling elite has abandoned its duty to ensure electricity remains an affordable public good that fuels economic growth and human development,” it said in a statement.

The EFF’s Statement Condemning NERSA’s Approval of Eskom’s Unjustified Tariff Hike

-In September 2024, Eskom sought approval for an outrageous 66% multi-year tariff escalation, with a staggering 36.15% increase proposed for 2025 alone. While NERSA scaled down the demand to just… pic.twitter.com/0EYQlIfZMi

— Economic Freedom Fighters (@EFFSouthAfrica) January 30, 2025

The EFF further stated that the crisis at Eskom is not an accident, and it refuses to let the country follow the “ruinous path”.

“It is the product of deliberate mismanagement, looting and a calculated agenda to privatise South Africa’s energy sector for the benefit of capitalist vultures.”

ALSO READ: City Power warns of ‘tariff shocks’ from Eskom’s proposed tariff restructuring

Nersa on its decision

Nersa made its decisions after conducting the due regulatory process, which included publishing Eskom’s MYPD6 revenue application and inviting written comments from stakeholders.

The chairperson of Nersa Thembani Bukula said the decision was necessary to balance Eskom’s needs with consumers’ financial realities.

“We appreciate the contributions from all stakeholders during this process and look forward to continuing our engagements as we work towards a sustainable energy future for South Africa,” he concluded.

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