The court ruling that’s about to push your Eskom bill higher
South Africans will soon be paying significantly more for electricity after the energy regulator Nersa approved larger-than-expected tariff increases
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South Africans will soon be paying significantly more for electricity after the energy regulator Nersa approved larger-than-expected tariff increases for the power utility Eskom.
This follows a court-ordered review of Eskom’s revenue, after Nersa admitted errors in its earlier calculations. The regulator approved an additional R54.7 billion in allowable revenue over the next two years, resulting in electricity price hikes of 8.76% in April 2026 and 8.83% in April 2027.
The energy regulator said the phased approach balances Eskom’s financial sustainability with consumer affordability while avoiding retroactive charges.
"The National Energy Regulator of South Africa (NERSA) announced today that based on the information at its disposal and the re-determination of Eskom’s Generation Regulatory Asset Base (RAB) for the 2025/26, 2026/27 and 2027/28 financial years, the Energy Regulator, at its meeting held on 7 February 2026, approved Eskom’s additional allowable revenue of R54 734 million," Nersa said.
"The decision aims to ensure regulatory certainty, the financial sustainability of electricity supply, and the protection of consumers from undue tariff volatility. The impact on the Eskom price would be additional increases of 3.4% and 2.64%,respectively, resulting in an increase of 8.76% for 2026/27FY and 8.83% for 2027/28FY"
The regulator added that the redetermination followed a High Court judgment in December 2025, which required Nersa to recalculate Eskom’s Generation Regulatory Asset Base (RAB) after the initial settlement was criticised.
NERSA said the process involved a detailed, component-by-component review of Eskom’s assets, including depreciation, work under construction, net working capital, and returns, using the approved MYPD4 methodology.
"The redetermination is an independent regulatory decision by NERSA, applying the approved MYPD4 Methodology and incorporating comprehensive public participation in line with the High Court’s remittal order. NERSA relied on section 15(1)(a) of the Electricity Regulation Act and section 9.3 of the MYPD4 Methodology to determine a reasonable return and depreciation, balancing price smoothing, a cost-reflective return and the prevention of excessive returns"
mthobisi.nozulela@iol.co.za
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