NERSA approves 8,76% Eskom tariff increase

The National Energy Regulator of South Africa (NERSA) has approved electricity tariff increases of 8,76% for Eskom direct customers and 9,01% for municipal distributors for the 2026/27 financial year following approval of Eskom’s Retail Tariffs and Structural Adjustment (ERTSA) application.

The decision was made during NERSA’s meeting on March 5 as part of the annual process when Eskom’s approved revenue is allocated across customer categories under the Multi-Year Price Determination (MYPD) framework.

The approval follows a ruling by the North Gauteng High Court on December 21, which required NERSA to establish a revised timetable for electricity tariff applications for the 2026/27 financial year. The court-mandated schedule introduced stricter submission deadlines for electricity distributors, including municipalities.

Under the revised timetable, electricity distributors were required to submit their tariff applications and supporting cost-of-supply studies by March 20.

According to NERSA, the approved 8,76% increase for Eskom direct customers will take effect from April 1, 2026 until March 31, 2027. The 9,01% increase applicable to municipalities purchasing electricity from Eskom will be implemented from July 1, 2026 until June 30, 2027 in line with the requirements of the Municipal Finance Management Act.

NERSA says the difference between the two increases reflects the different implementation timelines for Eskom direct customers and municipal distributors.

“We determine Eskom’s allowed revenue for a defined period through the MYPD framework,” says Charles Hlebela, Head of Communications at NERSA. “As part of this process, Eskom is required to submit an annual ERTSA application to NERSA for approval, detailing how the approved revenue will be distributed across various customer categories.”

The revenue re-determination process was completed on February 7, allowing Eskom to submit its ERTSA application on February 10 in line with the revised regulatory timetable, NERSA added.