Nersa Eskom tariff increase : This is what you need to know

South Africans are set to face significant electricity price hikes as the energy regulator Nersa approves unexpected tariff increases for Eskom. This decision follows a court review that revealed earlier calculation errors, leading to an additional R54.7 billion in allowable revenue over the next two years.

Larger-than-Expected Tariff Increases

The energy regulator, Nersa, recently approved tariff increases that exceed initial expectations. This decision will escalate electricity costs for consumers, following the review of Eskom's revenue and previous miscalculations.

Additional R54.7 Billion Approved

As part of the new tariff adjustments, Nersa has approved an additional R54.7 billion in allowable revenue for Eskom over the coming two years. This is expected to contribute to mandatory price hikes of 8.76% in April 2026 and 8.83% in April 2027.

Balancing Financial Sustainability and Consumer Costs

Nersa stated that its phased approach aims to balance Eskom’s financial sustainability with the affordability of electricity for consumers. These measures are designed to avoid retroactive charges that would further burden consumers.

Court Review Led to Reassessment

A significant factor in this decision was a High Court order from December 2025, which mandated Nersa to recalculate Eskom’s Generation Regulatory Asset Base (RAB) due to concerns over the initial revenue settlement.

Comprehensive Review of Eskom's Assets

In carrying out its reassessment, Nersa conducted a meticulous analysis of Eskom’s assets, including depreciation and net working capital, utilising the approved MYPD4 methodology to ensure transparency and fairness in its calculations.

Commitment to Regulatory Certainty

Nersa's revised determination aims to provide regulatory certainty while ensuring the long-term viability of electricity supply. It also seeks to protect consumers from severe fluctuations in tariff costs, thus promoting stability in the energy market.

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