Nersa approves 12.7% tariff increase for Eskom — one-third of its original ask

The national energy regulator (Nersa) announced on Thursday afternoon that it has approved a 12% tariff increase for Eskom in the 2025/26 financial year. This is one-third of what the utility had asked for.

Thembani Bukula, chairman of Nersa,  said they had also approved an 11% increase for the 2026/27 financial year and a 9.1% hike for 2027/28. 

For 2025/26 the increase will provide R384-billion in revenue for Eskom and will kick in from 1 April.

Bukula said Nersa had heard the pleas of domestic consumers and businesses that an electricity increase along the lines of Eskom’s original request of 36% would be disastrous for households and businesses.

“This is never an easy task. But we have heard you,” he added.

Witnesses before the extensive hearings held by Nersa testified that a 36% rise would mean they would have to choose between electricity and food.

Read more: Food or electricity — power tax forces a cruel choice on Joburg’s poorest people

Several stakeholders from the South African business sector also testified that retrenchments would be unavoidable if a 36% increase was approved.

Eskom had based its request on several factors, which were explained by its chief financial officer, Calib Cassim, during the Nersa hearings. These included that the regulator had not allowed Eskom to recover the cost of producing electricity for many years.

The increase in municipal debt from local governments not paying their accounts were also raised as a significant risk by Eskom. 

Yet Eskom declared a R17.8-billion in profit for the six months to the end of September 2024 on the same day Nersa confirmed the approval of the tariff increase.  

The power utility said the interim results were impacted by “seasonal fluctuations” including: 

• Revenue from electricity sales and consequently electricity receivables and the related value added tax impact are normally higher during the first six months of the financial year (winter months) as compared to the summer months because of the high demand season tariff increases. 


• Primary energy costs associated with renewable IPP purchases are lower in the winter months (first six months of the financial year) due to a lower proportion of power being produced from renewable sources during this time.


• Less routine maintenance work (and consequently lower costs) is normally undertaken during the winter months which coincides with the first six months of the financial year. Repairs and maintenance, however, increased for the six month period to 30 September due to extensive planned and unplanned maintenance performed to address plant performance challenges aligned to the generation recovery plan.