KEY POINTS
- Eskom settlement with Nersa corrects past revenue miscalculations, granting the utility R54 billion over three years.
- Tariffs to climb further, with additional increases of 3.4% in 2026/27 and 2.64% in 2027/28 on top of existing hikes.
- Public backlash grows as unions, civic groups, and municipalities warn that higher electricity prices will worsen poverty, illegal connections, and service delivery risks.
South African households and businesses are bracing for steeper power bills after Eskom and the country’s energy regulator signed off on a deal that will push tariffs higher over the next three years.
The agreement—quietly concluded in late July—follows Eskom’s legal challenge to the National Energy Regulator of South Africa (Nersa) over what the utility argued was a calculation blunder. Nersa eventually admitted to underestimating depreciation costs and the value of Eskom’s generation assets.
The correction means Eskom will now recover an additional R54 billion in revenue through 2028, though still far short of the R107 billion it had originally demanded.
For ordinary South Africans, the technical explanations matter little. What they see is another round of price hikes in a country where electricity has already become unaffordable for millions.
“Residents are reeling from every other increase and now have to pay extra for electricity, which many can’t afford,” said Anthony Waldhausen, who chairs the Msunduzi Association of Residents, Ratepayers, and Civics. “This blunder shows incompetence from both Nersa and Eskom.”
Settlement Pushes Tariffs Higher in 2026 and 2027
Under the terms of the settlement, Eskom’s approved revenue climbs to R384.6 billion in the 2025/26 financial year, R409.5 billion in 2026/27, and R436.8 billion in 2027/28. That translates into tariff increases of 12.74%, 5.36% and 6.1% respectively—before layering on the effects of the R54 billion settlement.
Nersa says the corrections will mean no additional price hike this year. But in 2026/27, tariffs will jump by an extra 3.4%, bringing the overall increase to 8.76%. The following year will see another 2.64% tacked on, for a total rise of 8.83%.
Nersa has defended the settlement as “a fair and balanced resolution” that protects consumers while ensuring Eskom’s survival. The utility is burdened with R400 billion in debt and chronic underinvestment in new generation capacity, even as the country reels from years of rolling blackouts.
