NERSA Approves Eskom Electricity Price Hike
South African consumers will have to brace for another blow to their cost of living, as the National Energy Regulator of South Africa (NERSA) has approved a 12.74% electricity price hike for Eskom, set to take effect in the next financial year.
The regulator has also approved further hikes of 5.36% for 2026/27 and a further increase of 6.19% for the 2027/28 financial year.
The decision comes as part of Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27, and 2027/28 financial years, which was announced on Thursday afternoon.
NERSA Board Chairperson, Thembani Bukula, described the complexity of the decision-making process as a “delicate balancing act” of “conflict” that took into account the needs of all stakeholders.
“We are required to ensure that Eskom is sustainable within the short and the long term. At the same time, we are required to ensure that the electricity services that Eskom provides are affordable.
“This is never an easy task. For inevitably, it is also influenced not just by our methodologies and rules but by the greater economic environment both locally and internationally. We remain guided and directed by the policies and the legislation of this country,” Bukula said.
Last year, Eskom applied to NERSA for increases of 36% in 2025/26, 11.81% in 2026/27, and 9.1% for the financial year 2027/28.
This proposal sparked significant public and business outcry, with many deeming the increases unaffordable.
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Bukula highlighted that the regulator took extensive steps to ensure that public participation inputs from all stakeholders were considered.
Stakeholder meetings and public hearings were held with written submissions also accepted by the regulator.
“During this process, we received various inputs from the stakeholders who came to our presentations as well as inputs that we got from the written comments. Top of the list was the affordability of electricity if the prices applied for by Eskom were approved. This was voiced by domestic customers as well as the business customers.
“Domestic customers stressed the fact that if these prices are approved, they then have to choose between buying food or buying electricity. Businesses on the other side made it clear that if these increases are approved, a lot of them would be forced to close their businesses,” he said.
Electricity and Energy Ministry notes NERSA electricity tariff decision
The Ministry of Electricity and Energy has expressed its confidence in the National Energy Regulator of South Africa (NERSA) – highlighting the regulator’s ability to maintain “independence and integrity” while balancing the diverse interests involved in electricity tariff decisions.
This following NERSA’s announcement of its decision on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
The regulator approved a 12.74% price hike for electricity starting at the beginning of the 2025/26 financial year in April 2025.
For 2026/27, NERSA greenlit increases of some 5.36% with a further increase of 6.19% from the start of the 2027/28 financial year.
Electricity and Energy Minister, Dr Kgosientsho Ramokgopa said: “We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and businesses, helping to stabilise the broader economic environment”.
Independent regulator
The Electricity and Energy department expressed confidence in the regulator’s ability to fulfil its mandate.
“We reaffirm our confidence in the independence and integrity of NERSA in fulfilling its mandate to ensure that electricity pricing balances the financial sustainability of Eskom with the economic realities faced by households, businesses, and industries.
“Whilst the approved tariff adjustments will place pressure on Eskom to stay the course with its investment strategy to strengthen and modernise its generation, transmission and distribution infrastructure, the Ministry remains committed to working closely with Eskom to drive greater efficiency gains.
“This will ensure that operational improvements and cost reductions contribute to the utility’s long-term financial sustainability while safeguarding the affordability and reliability of electricity supply,” the department said.
Furthermore, in recognition of rising energy concerns, the department will “continue introducing measures to provide relief to vulnerable households and small businesses to cushion them from rising electricity costs”.
“As part of our broader energy strategy, the government remains committed to pursuing an energy mix that delivers affordable, secure, and sustainable electricity for all South Africans, in line with our decarbonisation commitments and long-term energy security goals.
“We call on all stakeholders to engage constructively in shaping our energy future, ensuring a transition that is inclusive, just, and responsive to South Africa’s developmental needs.
“The Ministry will continue working towards long-term energy affordability and reliability, ensuring that no South African is left behind in the country’s energy transition,” the department concluded.