NERSA launches probe into fixed and capacity charges

The National Energy Regulator of South Africa (NERSA) has begun a formal investigation into fixed charges, generation capacity charges, legacy charges and other related costs added to electricity bills by Eskom and municipalities.

The inquiry comes in response to growing concerns from customers and other stakeholders about how these charges are structured, why they have been increasing and whether they are fair. The process will examine how the charges were calculated, their impact on different customer groups and whether they align with approved tariff guidelines, NERSA says.

“By engaging stakeholders and rigorously interrogating the basis of these charges, we aim to deliver regulatory guidance that promotes fairness, cost-reflectivity and stability in the electricity market,” says Nomfundo Maseti, NERSA’s Full-Time Regulator Member for Electricity.

The inquiry will focus on municipal fixed charges and Eskom’s unbundled generation tariffs, which include the generation capacity charge, legacy charge and variable energy charge. It will involve data requests, stakeholder submissions and public hearings.

Stakeholders have until October 25 to submit written comments and evidence. A public hearing will take place on November 17, followed by a draft report in December. The final report is expected in early 2026.