Centurion residents, businesses disheartened as possible electricity hikes loom

Residents and business owners in Centurion are disheartened by the recent announcement of possible new hikes in electricity tariffs following Eskom and the National Energy Regulator of South Africa’s (Nersa) latest settlement.

Many argue the increases will come at a time when households and small businesses are already struggling to keep up with rising costs of living.

Lyttelton resident, Phillip van Rensburg, said the possibility of hikes left him feeling cornered.

“Electricity prices are already sky-high, and now there is a possibility that we might pay even more,” he said.

He explained that his family had invested in energy-saving appliances, switched off geysers during peak hours and reduced usage wherever possible, yet the bills still climbed.

“We’re doing everything we can to cut down, but it feels like no matter how much we sacrifice, we’re punished anyway,” added Van Rensburg.

Valhalla resident, Damond Davel also shared his frustration and pointed to a different grievance.

“We pay more every year, but the service keeps getting worse.”

He noted that hikes were unjustifiable in the face of unreliable supply.

“How can they keep charging us more when the electricity is not even consistent? We’re in the dark half the time, but they still want premium rates. It’s daylight robbery,” he said.

Davel added that the impact of power cuts stretched far beyond inconvenience.

“It’s not just about sitting without lights. Food goes bad in the fridge, appliances get damaged from power surges, and we’re constantly spending extra on gas, candles, and inverters to cope.

“Every year, Eskom tells us prices must rise to keep the system going, but the system doesn’t improve. Instead, we end up paying more for less,” he said.

For Olievenhoutbosch business owner Khanyisile Dlamini, who runs a small catering company, the issue affects her livelihood.

“My fridges, stoves and ovens all depend on power, and when the bills go up, so do my costs,” she said.

She stated that customers cannot always absorb the higher prices, which eats into her profits.

“Electricity is already one of my biggest expenses. If these hikes continue, small businesses like mine won’t survive,” added Dlamini.

The backlash comes after Nersa confirmed on August 27 that it had reached a settlement with Eskom on the Sixth Multi-Year Price Determination (MYPD6) revenue decision for the 2025/26 to 2027/28 financial years.

Nersa spokesperson Charles Hlebela explained that on January 30, the Energy Regulator made the following decisions on Eskom’s allowable revenue application:

– Approved revenues of R384 610-million for the 2025/26 financial year, which translates to a percentage increase of 12.74%.

– Approved revenues of R409 524-million for the 2026/27 financial year, which translates to a percentage increase of 5.36%.

– Approved revenues of R436 860-million for the 2027/28 financial year, translating to a percentage increase of 6.19%.

“However, Eskom lodged a judicial review on July 2, arguing that the decision created a R107-billion revenue shortfall,” he said.

The power utility said the gap was caused by a data input error that mostly affected depreciation and the Regulatory Asset Base value for the generation business.

According to Hlebela, Eskom challenged the decision only in respect of the generation business and requested the court to set aside the regulator’s ruling.

Nersa evaluated Eskom’s claims to determine whether it could mount a sustainable opposition.

He said the regulator decided not to oppose the application, but emphasised that this did not imply acceptance of all the reliefs Eskom requested.

Instead, both parties agreed to enter into settlement negotiations to resolve the matter amicably.

Hlebela said that after reviewing the founding papers and case law, Nersa identified calculation errors that led to an underestimation of Eskom’s application.

One mistake was an incorrect depreciation amount captured in its decision documents, which created a shortfall of R14.5-billion.

Another error related to an asset transferred for commercial operation, where the cumulative balance principle was not applied for the generation business, affecting the 2026/27 and 2027/28 financial years.

“After rectifying these errors, Nersa concluded that Eskom was entitled to an additional R54-billion over the three-year MYPD6 period, an amount substantially lower than Eskom’s original claim of R107-billion,” said Hlebela.

He added that the parties officially settled on July 30.

“The settlement between Eskom and NERSA can only be effective after it has been made an order of the court, which has not yet been secured, and which has delayed the release of this media statement to avoid pre-empting the decision of the courts.”

He explained the disbursement of the R54-billion would be phased in to reduce immediate pressure on consumers.

R12-billion will be recovered in the 2026/27 financial year, R23-billion in 2027/28, and the balance during the next MYPD determination cycle.

This phasing means there will be no additional price increases for the current financial year, but consumers will see an added 3.4% in 2026/27 and 2.64% in 2027/28.

“This means tariffs for those years will increase to 8.76% and 8.83%, respectively,” added Hlebela.

He emphasised that these figures will still be subject to adjustment through the Regulatory Clearing Account process.

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