KEY POINTS
- NERSA has approved an 8.76% tariff increase for Eskom direct customers and 9.01% for municipal distributors for the 2026/27 financial year.
- The decision follows a court-mandated revised timetable requiring electricity distributors to submit tariff applications by March 20, 2026.
- Implementation dates differ: Eskom direct customers from April 1, 2026, and municipalities from July 1, 2026, reflecting staggered revenue allocation schedules.
The National Energy Regulator of South Africa, NERSA, has approved an electricity tariff increase of 8.76% for Eskom direct customers and 9.01% for municipal distributors for the 2026/27 financial year. The decision follows Eskom’s Retail Tariffs and Structural Adjustment (ERTSA) application and forms part of the annual Multi-Year Price Determination (MYPD) process, which allocates approved revenue across customer categories.
The approval follows a North Gauteng High Court ruling on December 21, 2025, which instructed NERSA to revise the timetable for electricity tariff applications for the 2026/27 financial year. Under the new schedule, electricity distributors, including municipalities, were required to submit their tariff applications and supporting cost-of-supply studies by March 20, 2026.
Implementation Dates Differ for Direct Customers and Municipalities
The 8.76% increase for Eskom’s direct customers will take effect from April 1, 2026, to March 31, 2027. Meanwhile, the 9.01% increase for municipal distributors will be applied from July 1, 2026, to June 30, 2027, in line with the Municipal Finance Management Act. The difference in percentage reflects the staggered implementation timelines between Eskom direct customers and municipal buyers of electricity.
Charles Hlebela, NERSA’s Head of Communications, explained that Eskom’s allowed revenue is determined for a defined period under the MYPD framework. Eskom must submit an annual ERTSA application detailing how the approved revenue will be distributed among customer categories.
The revenue re-determination process was completed on February 7, allowing Eskom to submit its application on February 10, 2026, in compliance with the revised regulatory timetable.
The tariff increases will impact Eskom’s direct customers and municipal electricity purchasers differently due to the timing of the adjustments.
The move underscores the ongoing challenges of ensuring that revenue collection keeps pace with Eskom’s operational and infrastructure costs, which are critical for maintaining South Africa’s power supply stability and supporting future energy investments.
