Nersa approves 8.76% electricity hike
Eskom says its approved tariff increase will help provide a stable and reliable electricity supply to customers.
The National Energy Regulator of South Africa (Nersa) has approved an electricity price increase of 8.76% for customers supplied directly by Eskom.
The tariff adjustments will come into effect for the 2026/2027 financial year and will be implemented from next month.
According to a statement by Eskom, municipal bulk purchasers will implement their tariff increases, averaging 9.01%, from July 1, in line with the Municipal Finance Management Act 56 of 2003.
Disciplined financial management
The act requires municipalities to implement tariff changes at the start of their financial year.
“We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognising the affordability pressures on both residential and business customers,” says Calib Cassim, Eskom’s group chief financial officer.
He adds that achieving this depends on disciplined financial management and finding smarter, more efficient ways of operating.
Stable electricity supply
For Eskom, the tariff increase supports the power utility’s ability to provide a stable and reliable electricity supply.
“Eskom’s revenue requirement covers the cost of generating, transmitting and distributing electricity, while migrating towards a fair return needed to maintain and invest in critical infrastructure,” says Eskom.
Nersa says it considered both customer affordability and the long-term sustainability of the electricity system, while Eskom has reassured customers that subsidised tariffs remain in place.
- Homelight tariffs continue to be subsidised, with these subsidies recovered through the affordability subsidy charge. The Homelight tariff is a simplified, low‑cost electricity rate for small‑usage residential customers supplied directly by Eskom.
- Rural tariffs also remain subsidised due to higher network costs in those areas.
These network-related subsidies, including those benefiting Homelight customers, are recovered through the electrification and rural subsidy charge and the low-voltage charge.
Affordability
“These measures continue to ensure that electricity remains accessible and affordable for low-income and rural households. Over the past three years, Eskom has made steady progress in improving the performance of its generation fleet,” says Eskom.
According to Eskom, the Energy Availability Factor has risen to 65.85% year-to-date (April 1, 2025, to March 12), with the fleet reaching or exceeding 70% on 83 occasions so far.
“The baseload units that anchor the system 24/7 have stabilised significantly, improving from 9% availability two years ago to being available more than 98% of the time today,” read the statement.
The detailed tariffs for customers who purchase electricity from Eskom are available on Eskom’s website.
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