PRETORIA, Gauteng — The National Energy Regulator of South Africa (NERSA) has officially gazetted Eskom’s proposed 8.83% electricity tariff increase for the 2027/28 financial year. Filed under the Eskom Retail Tariff Structural Adjustment application, the approved adjustment will see direct Eskom customers facing the hike from 1 April 2027, while municipal customers will experience an average 8.84% increase effective 1 July 2027.
The announcement has sparked public debate, particularly as the utility recently reported record profits, leading many consumers to question the justification for further tariff hikes in a constrained economic environment.
Addressing these concerns, Welile Mkhize, NERSA’s head of department for electricity licensing, compliance and dispute resolution, clarified that the current adjustment is not a new decision, but rather the scheduled rollout of the Multi-Year Price Determination 6 (MYPD6).
“The MYPD6 process is where NERSA makes a revenue decision based on the following three years for the utility,” Mkhize explained. “This determination was already completed and approved in 2025 for the 2026, 2027, and 2028 period. What we are seeing now is the annual Eskom Retail Tariffs Determination (ERA) process, which simply implements those prior decisions.”
When questioned about Eskom’s recent financial windfall, Mkhize noted that the utility’s profitability is a direct result of improved operational efficiency. Specifically, Eskom has significantly reduced its reliance on expensive diesel for open-cycle gas turbines and has improved the overall performance of its power stations.
“The regulator’s approval is strictly based on prudent and efficient costs, as provisioned in Section 15 of the Electricity Regulations Act,” Mkhize stated. “When the utility operates more efficiently, it naturally opens itself up to generate additional profit, which is what we are currently witnessing.”
Despite the current trajectory, Mkhize highlighted that relief may be on the horizon for vulnerable consumers. The Minister of Mineral Resources and Energy recently published a new electricity pricing policy, which is currently open for public comment. This policy introduces a comprehensive subsidy framework aimed at making electricity more affordable for indigent households.
“While not yet gazetted or approved, the new pricing policy talks about a subsidy framework that could see free basic electricity for indigent customers increase from the existing 50 kilowatt-hours per month to a much more substantive amount, potentially around 250 kilowatt-hours per month,” Mkhize noted, adding that this would provide meaningful relief for those struggling with cost-reflective tariffs.
NERSA has emphasized that the current tariff determination process remains open to public scrutiny and is not merely a bureaucratic formality. Stakeholder submissions are officially open until 2 October 2026, followed by a public hearing scheduled for 8 October 2026.
Mkhize assured the public that all inputs will be rigorously evaluated using scientific methodologies guided by the Electricity Regulations Act. To illustrate the regulator’s independence, he pointed out that during the 2024 MYPD6 application cycle, Eskom initially requested a tariff increase of approximately 34% to 35%. After evaluating the prudence of the costs and the broader economic impact on households and businesses, NERSA’s final determination reduced that figure to the current 8.83%.
Consumers and stakeholders are encouraged to submit their comments and participate in the upcoming public hearing to ensure their economic realities are factored into the final regulatory outcome.
