Controversial Eskom tariff increase approved after Nersa's recalculations

The National Energy Regulator of South Africa (Nersa) said that it granted Eskom larger electricity rate increases for its next two financial years than originally set after admitting errors in its earlier calculations.

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.

Activists reject Nersa's decision on Eskom's proposed tariff hikes

23 Jan 2026

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.