Nersa Eskom tariff increase: This is what you need to know

The energy regulator said the phased approach balances Eskom’s financial sustainability with consumer affordability while avoiding retroactive charges. South Africans are set to face significant electricity price hikes as the energy regulator Nersa approves unexpected tariff increases for Eskom.This decision follows a court review that revealed earlier calculation errors, leading to an additional R54.7 billion in allowable revenue over the next two years. The energy regulator, Nersa, recently approved tariff increases that exceed initial expectations.

This decision will escalate electricity costs for consumers, following the review of Eskom’s revenue and previous miscalculations. As part of the new tariff adjustments, Nersa has approved an additional R54.7 billion in allowable revenue for Eskom over the coming two years. This is expected to contribute to mandatory price hikes of 8.76% in April 2026 and 8.83% in April 2027.

Nersa stated that its phased approach aims to balance Eskom’s financial sustainability with the affordability of electricity for consumers. These measures are designed to avoid retroactive charges that would further burden consumers. A significant factor in this decision was a High Court order from December 2025, which mandated Nersa to recalculate Eskom’s Generation Regulatory Asset Base (RAB) due to concerns over the initial revenue settlement. In carrying out its reassessment, Nersa conducted a meticulous analysis of Eskom’s assets, including depreciation and net working capital, utilising the approved MYPD4 methodology to ensure transparency and fairness in its calculations.