KEY POINTS
- South Africa’s regulator Nersa approved higher electricity tariffs for Eskom after admitting calculation errors, with rates rising 8.76 percent in 2026 and 8.83 percent in 2027.
- Eskom recently recorded its first full-year profit in eight years, aided by government support and improved coal power station performance.
- The tariff adjustments followed legal challenges and public consultations, with the high court ordering a fresh determination of rates.
South Africa’s energy regulator, Nersa, has approved higher electricity rate increases for state utility Eskom for the next two financial years after acknowledging errors in its previous calculations.
The new tariffs will see an 8.76 percent rise in April 2026 and an 8.83 percent rise in April 2027, up from the earlier proposed 5.36 percent and 6.19 percent increases.
The regulator said the revised tariffs aim to balance Eskom’s financial sustainability with the affordability of electricity for consumers.
Eskom, which supplies the majority of electricity in Africa’s largest economy, has struggled with financial challenges for years, partly blaming Nersa’s previous tariff decisions.
However, the utility reported its first full-year profit in eight years last year, boosted by a multi-year government bailout and improved performance of its coal-fired power plants.
Legal Challenges Prompt Reassessment
Nersa initially set the tariff increases in January 2025 but later admitted errors in calculating Eskom’s tariffs for the 2025/26 to 2027/28 financial years. A settlement between Nersa and Eskom was reached in July 2025, but the high court rejected it in December, ordering the regulator to make a fresh determination after reviewing public submissions.
The new rate increases now reflect this reassessment and aim to ensure Eskom remains financially viable while considering customer impact.
