Controversial Eskom tariff increase approved after Nersa's recalculations

Image credit: Reuters

Eskom's prices will now rise 8.76% in April this year, and 8.83% in April 2027 instead of 5.36% and 6.19%, regulator Nersa said in a statement.

It added that the revised tariff increases balanced Eskom's financial sustainability with customer affordability.

Eskom, a former monopoly that still supplies the bulk of the electricity in Africa's biggest economy, has been mired in a financial crisis for years, which it partly blames on Nersa's tariff decisions.

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But the utility made its first full-year profit in eight years last year, helped by a multi-year government bailout and a sharp turnaround in the performance of its coal-fired power stations.

After first setting rate increases in January 2025, Nersa admitted errors in calculating Eskom's tariffs for the 2025/26 to 2027/28 financial years and settled with Eskom in July.

But in December, the high court rejected the settlement and ordered Nersa to make a fresh determination on Eskom's tariffs after getting submissions from the public.