The Energy Intensive Users Group of Southern Africa (EIUG) has raised alarm about Eskom’s R54 billion settlement with the National Energy Regulator of South Africa (NERSA), warning it will deepen price instability and burden struggling industries.
The deal, concluded on July 30 after Eskom lodged a judicial review of NERSA’s January revenue decision, will push tariff hikes higher than initially approved. Electricity prices will rise by 8,76% on April 1 next year (previously 5,36%) and 8,83% in 2027/28 (previously 6,19%) in addition to the 12,74% increase already implemented for 2025/26. NERSA said the usual public consultation process could not be followed due to the judicial nature of the settlement, which still requires court confirmation.
The EIUG, with members representing over 40% of South Africa’s electricity consumption, criticised the lack of transparency, saying some industrial users are already facing increases of up to 19% due to changes in the Retail Tariff Plan.
“This settlement leaves much to be desired, especially when it comes to the implementation period, which directly affects consumers already under serious financial pressure,” said EIUG CEO Fanele Mondi.
The EIUG said the R54 billion adjustment exceeds the 4% threshold typically used to trigger regulatory clearing account reviews – and called for a broader review of the multi-year price determination methodology, saying it has not delivered price stability or predictability.
