KEY POINTS
- Eskom will implement an 8.76% electricity tariff increase for direct customers from April 2026, following NERSA approval.
- Municipal customers will see an average 9.01% increase from July 2026 in line with financial regulations.
- Subsidies for low-income and rural users remain in place, while Eskom reports improved power generation performance.
South Africa’s state-owned power utility, Eskom, has announced the implementation of new electricity tariffs for the 2026/27 financial year following approval from the National Energy Regulator of South Africa (NERSA).
According to the decision issued on March 5, 2026, electricity prices for customers supplied directly by Eskom will increase by an average of 8.76%, with the new rates taking effect from April 1, 2026.
For customers who receive electricity through municipalities, tariff adjustments, averaging 9.01%, will come into effect from July 1, 2026. This timeline aligns with the provisions of the Municipal Finance Management Act (MFMA), which mandates that municipal tariff changes coincide with the start of their financial year.
Eskom’s Group Chief Financial Officer, Calib Cassim, stated that the utility remains mindful of the financial strain on households and businesses. He emphasized that future tariff increases would be carefully managed to remain reasonable while ensuring operational sustainability.
Cassim noted that achieving this balance would require strict financial discipline and improved operational efficiency across the utility’s value chain.
The approved tariff increase is expected to support Eskom’s ability to maintain a stable electricity supply by covering the costs associated with power generation, transmission, and distribution. It will also enable the utility to invest in critical infrastructure and ensure long-term system reliability.
NERSA, in its decision, weighed both consumer affordability and the need to sustain South Africa’s electricity system when approving the tariff adjustments.
Subsidies to Protect Vulnerable Consumers
Eskom reaffirmed that subsidy mechanisms will remain in place to cushion the impact of rising tariffs on vulnerable groups.
The Homelight tariff, designed for low-income households, will continue to be subsidised through the Affordability Subsidy Charge. Similarly, rural customers will benefit from ongoing subsidies that account for higher network costs in those areas.
These subsidies are funded through mechanisms such as the Electrification and Rural Subsidy (ERS) charge and the Low-Voltage charge, ensuring that electricity remains accessible and affordable for disadvantaged communities.
Eskom also highlighted progress in improving its generation performance over the past three years. The utility’s Energy Availability Factor (EAF) has reached 65.85% for the current financial year to date, with generation capacity exceeding 70% availability on multiple occasions.
Baseload power units, which provide continuous electricity supply, have shown significant improvement, rising from just 9% availability two years ago to over 98% reliability today. This marks a notable turnaround in the stability of South Africa’s power system.
The utility reiterated its commitment to transparency, financial discipline, and operational efficiency as it works toward delivering a reliable electricity supply for all South Africans.
