KEY POINTS
- Eskom will increase electricity tariffs by 8.76% from April 1, 2026, while municipalities will implement a 9.01% hike from July.
- The revised increase is higher than earlier estimates, with further tariff hikes expected in 2027.
- Eskom says the increase is necessary to sustain operations, despite ongoing concerns about affordability for consumers.
South Africa’s power utility, Eskom, will increase electricity tariffs by 8.76% starting April 1, 2026, following approval from the National Energy Regulator of South Africa.
The adjustment affects customers who purchase electricity directly from Eskom, marking a significant rise from earlier projections.
For residents who receive electricity through municipalities, tariff adjustments will take effect later in the year. Municipal electricity prices are expected to rise by an average of 9.01% from July 1, 2026.
This phased approach reflects the different supply structures between Eskom and local government distribution systems.
Revised Figures Push Tariffs Higher
The approved 8.76% increase is higher than the initially announced 5.36%, after NERSA corrected calculation errors.
Looking ahead, electricity prices are expected to rise further in 2027, with tariffs now projected to increase by 8.83%, up from the earlier estimate of 6.19%. These adjustments form part of a phased plan to incorporate an additional R54 billion granted to Eskom.
Eskom’s Chief Financial Officer, Calib Cassim, stated that the utility is mindful of the financial strain on consumers and aims to keep future tariff hikes within reasonable limits.
Meanwhile, Eskom spokesperson Daphne Mokwena explained that the increase is necessary to sustain electricity supply and fund critical infrastructure. According to her, the revenue will cover generation, transmission, and distribution costs, while ensuring a fair return for continued investment.
Despite the hike, low-income households on the Homelight tariff will continue to benefit from subsidised rates. Rural customers will also remain on subsidised pricing due to the higher cost of delivering electricity to those areas.
