Eskom’s electricity tariffs are expected to increase by 8,76% on April 1 next year, instead of the previously approved 5,36%, and by 8,83% in 2027/28 instead of 6,19%. The higher hikes follow a R54 billion settlement between Eskom and the National Energy Regulator of South Africa (NERSA), which adjusted the revenue determinations for the sixth multi-year price determination period.
The agreement was concluded on July 30 after Eskom lodged a judicial review of NERSA’s January revenue determination. Eskom argued that methodological errors in the treatment of depreciation and the regulatory asset base materially understated its allowable revenue.
In January, NERSA approved Eskom’s revenues at R384,6 billion for 2025/26 (a 12,74% increase), R409,5 billion for 2026/27 (5,36% increase) and R436,9 billion for 2027/28 (6,19% increase). Following the settlement, NERSA confirmed that R12 billion will be recovered in 2026/27, R23 billion in 2027/28 and the remainder will be carried over into the next tariff cycle.
As the settlement stems from a judicial review, NERSA could not follow the usual public process. It will only take effect once confirmed by the court, the regulator says.
“This is a fair and balanced resolution that takes into account Eskom’s financial sustainability while protecting consumers,” said Nomfundo Maseti, full-time Regulator Member at NERSA.
