Proposed Eskom deal sparks power price fears
Residents have until January 21 to submit their views on a proposed R76-billion settlement that may raise electricity costs.
Centurion residents are concerned about possible higher electricity bills.
This follows a new proposed settlement of R76-billion between Eskom and the National Energy Regulator of South Africa (Nersa) that is yet to be approved.
If the R76-billion adjustment is approved, electricity tariffs could rise by about 10.5% this year, compared to the 5.36% originally projected before the redetermination.
Hennopspark resident Jamie Le Roux said another steep electricity hike would place added pressure on household budgets that are already stretched by rising living costs.
He explained that electricity has become one of the most unpredictable monthly expenses, forcing families to cut back elsewhere to stay afloat.
“For many of us, electricity is no longer something you can plan for properly. These higher tariffs affect everything from basic daily use to working from home,” said Le Roux.
In Rooihuiskraal, resident Nkosikhona Biyana noted that the impact goes beyond households and could affect the local economy as a whole.
Biyana explained that increased electricity costs raise operating expenses for small businesses, which are often passed on to consumers through higher prices.
“When electricity tariffs go up, it affects local shops and service providers, not just homes,” he said.
He added that higher costs can slow economic activity and place additional pressure on jobs within the community.
The proposed settlement between Eskom and Nersa is currently open for public comment.
If approved, this settlement would add to the steady rise in electricity costs experienced in recent years.
Last month, the Pretoria High Court set aside an earlier R54-billion settlement between Eskom and Nersa, citing insufficient transparency and a lack of adequate public consultation.
As a result, Nersa was instructed to reopen the process and allow affected parties to provide input.
Following the court’s decision, Nersa published a new consultation paper on December 30, revealing that the proposed settlement amount had increased to R76-billion.
In August last year, Nersa spokesperson Charles Hlebela confirmed that Eskom and the regulator had agreed on the R54-billion settlement after errors were identified in the calculation of electricity tariffs.
He explained that the payment of the R54-billion would have been phased in to reduce immediate pressure on consumers.
“R12-billion would be recovered in the 2026/27 financial year, R23-billion in 2027/28, and the balance during the next MYPD [multi year price] determination cycle.”
Hlebela added that this phasing meant there would be no additional price increases for the current 2025/26 financial year.
However, consumers would have seen an added 3.4% increase in 2026/27 and 2.64% in 2027/28.
“This means tariffs for those years would have increased to 8.76% and 8.83%, respectively,” he said.
IMPOWER Solar has since called on South Africans to actively participate in the renewed public consultation process, which closes on January 21.
Matthew Cruise, Business Development Expert at IMPOWER Solar, expressed concern about the timing and nature of the consultation.
“The release of a document of this significance on December 30, with a submission deadline of January 21, provides a very narrow window for the public and businesses to respond,” he said.
Cruise also noted that the consultation paper focuses heavily on complex legal and accounting issues, rather than simply asking whether the proposed increase is acceptable.
He argued that this effectively requires the public to comment on how Eskom should be prevented from receiving undue compensation across 10 technical areas.
He further noted that it is troubling that, after 15 years of electricity price determinations, Eskom and Nersa are still disputing fundamental accounting principles.
“It is concerning that after 15 years of price determinations, the regulator and the utility are still in dispute over basic accounting issues such as asset depreciation.
“The depreciation in question often relates to power stations where construction costs were significantly higher than originally budgeted,” Cruise said.
“South African consumers are now being asked to cover the accounting consequences of those overruns.”
Cruise warned that continued tariff hikes risk placing additional strain on the national economy, adding that when certain industries or sectors receive tariff relief, the resulting revenue shortfall is often recovered from households and smaller businesses.
Stakeholders and members of the public are requested to comment in writing on the Consultation Paper on the re-determination of the Eskom Generation RAB for the years 2025/26, 2026/27, and 2027/28.
Click here for the consultation paper: https://www.nersa.org.za/files/files/2025/12/ConsultationpaperonRABRedetermination.pdf
Written comments can be emailed to mhpd@nersa.org.za, hand-delivered to Kulawula House, 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria. The closing date for submissions is January 21 at 16:00.
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