South Africa’s energy regulator, the National Energy Regulator of South Africa (Nersa), has revised its earlier tariff rulings, allowing state-owned utility Eskom to increase electricity prices more than previously approved. The move follows recalculations of revenue requirements after a court ruling and is intended to ensure the utility’s financial sustainability, Reuters reported.
Under the updated determination, Eskom’s tariffs will rise by 8.76% in April 2026 and 8.83% in April 2027, compared with prior approvals of 5.36% and 6.19%, respectively. Nersa said the adjustments balance the utility’s operational needs with customer affordability, addressing shortfalls identified in previous calculations.
The revised increases are expected to generate additional revenue of approximately R54.7 billion, affecting both households and municipalities that rely on Eskom-supplied power. Local analysts noted that these hikes are steeper than initially forecast and will likely have broader economic impacts, including on industrial electricity consumers, TradingView noted.
Eskom, which supplies most of South Africa’s power, has cited financial pressures from earlier regulatory rulings but recently recorded its first full-year profit in years, aided by a government bailout and improved coal plant performance. The new tariff decision, however, has drawn criticism from some local governments and consumer advocates, who warn that higher electricity costs will exacerbate household financial strain, according to investing.com.
