The National Energy Regulator of South Africa (Nersa) has approved an average electricity tariff increase of 8.76% for Eskom’s direct customers, effective from April 1, 2026, for the 2026/27 financial year. This adjustment applies to households and businesses purchasing electricity directly from Eskom, while municipalities will implement their related increases, averaging around 9.01%, from July 1, 2026.
The hike follows Nersa’s decision on March 5, 2026, and stems partly from a correction to earlier calculations. Nersa had initially approved lower increases—around 5.36% for 2026/27—but identified errors in allowable revenue determinations, including issues with depreciation and the Regulatory Asset Base for Eskom’s generation business. This resulted in a shortfall estimated at R54.7 billion, which is being recovered through phased tariff adjustments over multiple years rather than a single large spike. The correction added approximately 3.4% to the increase for the coming year.
Eskom spokesperson Daphne Mokwena addressed the development in an interview, confirming the 8.76% average price rise for direct customers starting April 1, 2026. She noted that Nersa had explained the error leading to the adjustment and emphasized that the regulator determines these increases after considering both Eskom’s sustainability and consumer affordability.
Mokwena highlighted that the tariff rise is necessary to cover the costs of generation, transmission, and distribution, while supporting investments in infrastructure to maintain a stable and reliable electricity supply. She pointed out Eskom’s ongoing efforts to end load shedding and transition toward more sustainable energy sources, stressing that similar discipline applied to ending load shedding is now being used to keep tariffs affordable.
The spokesperson reaffirmed Eskom’s commitment to single-digit increases moving forward, moving away from the unpredictable double-digit hikes seen in previous years. She also noted that Nersa incorporates protections for vulnerable consumers, including subsidized tariffs such as Homeflex for low-usage households and support for rural customers, ensuring electricity remains accessible for the poorest.
Critics, including some organizations, have argued that the increase effectively forces ordinary citizens to cover Nersa’s administrative errors and Eskom’s operational inefficiencies. In response, Mokwena stated that the increases are set by Nersa based on efficient costs, and Eskom is applying disciplined financial management to ensure affordability while delivering reliable power.
The tariff adjustment coincides with other economic pressures, including a significant fuel price increase on the same date, raising concerns about the cumulative impact on households and businesses already facing high living costs. Over two years, the combined effect—with a projected 8.83% increase for 2027/28—amounts to roughly 18.36% in compound terms, prompting questions about long-term sustainability for consumers and the economy.
Eskom continues to navigate financial and operational challenges while working toward grid stability and a shift to sustainable energy. The approved increase aims to balance the utility’s need for a fair return on investments with broader affordability considerations.
