RATEPAYERS are concerned about the National Energy Regulator of South Africa (Nersa) approving a 12.74% tariff increase for Eskom direct customers for the 2025/2026 financial year.

The announcement was made on Monday, and the changes in the tariff increases are expected to be implemented by 1 April 2025.

Nersa said that it considered and approved the Eskom Retail Tariffs and Structural Adjustment (ERTSA) application with an average tariff increase of 12.74% for Eskom direct customers and 11.32% for municipalities.

“The approved standard tariff increase of 12.74% will be implemented on 1 April 2025 until 31 March 2026 for Eskom direct customers, and the 11.32% increase will be implemented on 1 July 2025 for municipal customers,” it said.

The energy regulator added that the difference in percentage was brought about by the difference in the implementation dates of Eskom direct customers and municipalities buying from Eskom.

“According to the ERTSA methodology, Eskom must recover the full allowed revenue within its financial year, which is from April to March.”

Power and energy expert, Prof Vally Padayachee, said that the approval of a 12.74% tariff increase for Eskom by Nersa was a significant decision that reflected the ongoing challenges faced by the electricity sector.

“This increase, though in my opinion not enough, does put a tight squeeze to assist Eskom to inter alia recover its costs, and it does go a reasonable way to maintain its operational and financial efficiency,” he said.

“However, it is crucial to acknowledge the impact of such increases on customers and the economy at large. Whilst the tariff increase is necessary for Eskom's financial sustainability, it also highlights the urgent need for a comprehensive power and energy strategy that addresses not only the pricing structure but also the long-term reliability and sustainability of energy supply in the country.”