Energy regulator Nersa has granted Eskom a whopping 12.74% tariff increase for the 2025/2026 financial year.
The regulator confirmed this in a media statement released on Thursday evening.
Though the double-digit tariff increase is substantially lower than the 36.15% increase that state-owned entity Eskom had applied for, it will nonetheless have a negative impact on the domestic economy that has been bedevilled by weak growth, a high unemployment rate and the world’s widest gap between the high and low income earners.
Analysis of Eskom’s sixth multi-year price determination
Nersa announced it made the decision based on the information at its disposal and the analysis of Eskom’s sixth multi-year price determination (MYPD6) revenue application for the 2025/2026, 2026/2027 and 2027/2028 financial years.
This was after the energy regulator held a meeting on January 30.
Nersa revealed that the 12.74% increase would result in Eskom generating R385 billion revenue.
The regulator also approved revenues of R410-billion for the 2026/2027 financial year, which translates to a percentage increase of 5.36%.
For the 2027/2028 financial year, Nersa has approved revenues of R437-billion, translating to a percentage increase of 6.19%.
“Eskom submitted its revenue application for 2025/2026, 2026/27, and 2027/2028. It requested R445, 563 000 000, R495, 355 000 000, and R536, 778 000 000, respectively.
Eskom submitted three separate applications
“Based on this application, the proposed standard tariff increases were projected at 36.15%, 11.81%, and 9.10% for the three years. Eskom submitted three separate applications for the Generation Business, the National Transmission Company of South Africa (NTCSA) and the Distribution Business.
“We believe that this decision strikes a necessary balance between the needs of Eskom and the financial realities of consumers. And we appreciate the contributions from all stakeholders during this process. We look forward to continuing our engagements as we work towards a sustainable energy future for South Africa,” said Mr Thembani Bukula, Nersa chairperson.
