Electricity price hikes ahead? Nersa criticised over ‘errors’ in tariff determination

The DA is demanding answers over the National Energy Regulator of South Africa’s (Nersa) R54-billion settlement with Eskom, ‘arising from errors’ in the determination of electricity tariffs announced earlier this year.

This as South Africans face electricity tariff hikes of 3.4% and 2.64% for the 2026/27 and 2027/28 financial years.

Nersa announced on Wednesday that it has concluded that Eskom was entitled to an additional R54-billion over the three-year multi-year price determination period – an amount substantially lower than Eskom’s original claim of R107-billion. The parties settled for R54-billion on 30 July.

While there will be no additional electricity price increase for the current financial year, the Nersa settlement agreement will have the following estimated price impact:

• For the 2026/27 financial year, the additional increase will be 3.4%, resulting in a price increase of 8.76%
• For the 2027/28 financial year, the additional increase will be 2.64%, resulting in a price increase of 8.83%

DA spokesperson for Electricity and Energy Kevin Mileham said this so-called ‘mistake’ means South Africans, already struggling under the weight of high electricity costs and a fragile economy, will now face additional tariff hikes.

“This is on top of the already steep increases previously approved. Businesses, municipalities and households will once again be forced to pay for the incompetence of the regulator and the inefficiency of Eskom,” said Mileham.

“It is unacceptable that a technical error in the calculation of depreciation and the Regulatory Asset Base could result in such a massive financial burden being shifted onto consumers.”

On 30 January, Nersa:

• 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%

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