Nersa has approved an electricity tariff increase of 8.76% from April this year, followed by a further 8.83% hike in April 2027.

The decision follows a High Court judgment in December, which remitted Nersa’s previous ruling on Eskom’s Generation Regulatory Asset Base (RAB) for the 2025/ 26, 2026/ 27 and 2027/ 28 financial years. The court ordered a redetermination of the tariffs.

Nersa conducted the redetermination using the approved Multi-Year Price Determination (MYPD4) methodology, following a public consultation process in line with the court ruling.

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“This process entailed a detailed, component-by-component recalculation of Eskom’s Generation RAB, using the same information originally submitted by Eskom in its MYPD6 application, and strictly applying the approved methodology,” the regulator said in a statement.

The phased implementation of the additional revenue is intended to limit price shocks.

“The phased approach limits additional price impacts to single-digit increases in 2026/ 27 and 2027/ 28, avoids any retrospective adjustment for 2025/ 26, and reduces tariff volatility and demand erosion risk, balancing Eskom’s financial sustainability with customer affordability. No retrospective tariff increases were applied,” the statement read.

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The redetermination aligns with statutory tariff principles, which require that tariffs enable an efficient licensee to recover the full cost of its licensed activities, including a reasonable return.

Nersa added that the adopted Weighted Average Cost of Capital (WACC) and phased recovery ensure Eskom receives a cost-reflective return while mitigating immediate tariff shocks and maintaining tariff stability.

“Nersa remains committed to transparent, fair, and independent regulation in the public interest,” the statement concluded.