The National Energy Regulator of South Africa (NERSA) has approved electricity price increases for Eskom but at significantly lower rates than what the power utility had requested.
NERSA announces decision on Eskom tariff hike
Consumers will see a 12.74% increase in 2025, followed by 5.36% in 2026 and 6.19% in 2027.
These adjustments are well below Eskom’s original proposal, which sought hikes of up to 36.15% for the first year alone.
In its announcement, NERSA said the decision balances Eskom’s financial needs with the affordability concerns raised by the public.
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The regulator confirmed it received over 1,200 public objections, many of which questioned the sustainability of Eskom’s finances and the impact of rising electricity costs on struggling households.
Despite widespread opposition, NERSA maintained that some level of tariff increase was necessary to support Eskom’s operations, especially as the utility faces ongoing financial difficulties and the challenge of stabilising the national grid.
What Eskom wanted vs what NERSA decided
Eskom had applied for a 36.15% tariff increase in the 2025/26 financial year, arguing that it needed R445.56 billion in revenue to cover the costs of electricity generation, transmission, and distribution.
NERSA, however, approved R384.61 billion, which resulted in a significantly reduced price hike of 12.74%.
For the following two years, Eskom’s request for an 11.81% increase in 2026/27 and 9.10% in 2027/28 was also adjusted down.
NERSA approved 5.36% for 2026 and 6.19% for 2027, keeping the hikes at nearly half of what Eskom had asked for.
NERSA made these cuts by trimming Eskom’s budget across generation, transmission, and distribution operations.
Eskom had requested R291.64 billion for power generation in 2025/26 but received only R249.68 billion.
Similarly, its transmission budget was cut from R100.52 billion to R95.59 billion, while the distribution allocation fell from R53.39 billion to R39.33 billion.
These reductions, according to NERSA, are meant to ensure Eskom remains operational while protecting consumers from steep electricity price increases that would have placed further strain on households and businesses.
South Africans can expect to pay more for electricity over the next three years.
The 12.74% increase in 2025 means that an average household paying R1,000 per month for electricity could see their bill rise by about R127.
The smaller hikes of 5.36% in 2026 and 6.19% in 2027 will bring further gradual increases, adding pressure to consumers already dealing with the rising cost of living.
Despite NERSA’s reductions, concerns remain about whether Eskom will be able to operate effectively within its approved budget.
