Eskom is seeking to implement an average tariff increase of 8.8% from April next year.
The DA says Eskom’s promise to keep tariff increases in the “single digits” offers little comfort to consumers. Picture: Gallo Images
The DA says Eskom’s promise to keep tariff increases in the “single digits” offers little comfort to consumers facing an 8.83% increase in 2027/28, almost three times the Reserve Bank’s 3% inflation target.
Eskom is seeking to implement an average tariff increase of 8.8% from April next year, following an adjustment approved by the National Energy Regulator of South Africa (Nersa).
Above inflation
This could be another above-inflation electricity tariff hike for consumers if Eskom gets its way.
Eskom is requesting permission to implement the third year of its multi-year price determination, as decided in 2025.
Eskom costs
DA spokesperson on electricity and energy Kevin Mileham said that while electricity becomes less affordable, Eskom’s own costs continue to rise.
“Direct employment cost per employee increased by roughly 24% between 2022/23 and 2024/25. In 2025/26, average remuneration rose by a further 7%, while short-term incentive obligations increased to R5.1 billion. Executive and board remuneration also increased materially.
“Eskom’s improved operational performance is welcome, but its reported profits cannot be separated from the substantial debt relief and financial support provided by taxpayers,” Mileham said.
Accountability
Mileham said Eskom must now publicly account for how it intends to contain its employment, incentive, and executive remuneration costs, and show what concrete savings will be passed through to consumers.
“It cannot keep asking households and businesses to fund rising internal costs through ever-higher electricity prices.”
Tariff increase
Last year, Eskom asked Nersa for a 36% increase in tariffs from April 2025 and 11% and 9% increases in 2026 and 2027.
The utility’s proposed tariff hike follows an almost 13% hike in April 2023. The hefty increase has already sparked controversy, with the DA launching a petition calling for the application to be rejected.
The sixth multiyear price determination (MYPD6) confirmed that Eskom is making a total allowable revenue application of R446 billion for 2026, R495 billion for 2027, and R537 billion for 2026, which it applied for and will be aimed at recovering what would have been determined as the allowable revenue.
Eskom’s application includes Regulatory Clearing Account (RCA) determinations, which allow the state-owned entity to recover revenues for a particular year if tariffs were too low.
Eskom profit
Last week, Eskom posted its second consecutive profitable year, signalling a deepening turnaround built on stronger operations, tighter cost control and improved energy security.
A shift, executives say, is transforming the utility from crisis management to long‑term sustainability.
Eskom reported a R30.3 billion profit after tax, more than double the restated R14 billion recorded in 2025.
