National energy regulator Nersahas approved a 12.74% increase for Eskomelectricity tariffs, which will come into effect from 1 April 2025.
Sadly, that’s no April Fool’s joke …
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Nersa announced its decision on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years during an online media briefing on Thursday.
It also approved a 5.36%tariff hike for 2026 and 6.19% for 2027.
The approved price hikes are far above inflation, currently at 3%.
However, the approved hikes are significantly lower than what Eskom was seeking and applied for.
Concerns raised by the public
Nersa chairperson Thembani Bukula announced the regulator’s decision, saying: “For the financial year 2025/26, the energy regulator approved an allowable revenue of R384 billion, which will amount to a 12.74% increase.
“For the year 2026/27, the energy regulator approved the allowable revenue of R409 billion, which amounts to a 5.36% increase.
“For the final year of the application, the energy regulator approved the allowable revenue of R435 billion, which amounts to 6.19%.”
Bukula said the decision was taken while considering the concerns raised by members of the public during the extensive consultation process at the end of last year.
As reported by The South African website, Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, earlier this week assured financially-struggling South Africans that there will not be a 36% electricity tariff hike in April.
That proved true with Nersa approving a 12.7% increase.
The Democratic Alliance (DA), who had lobbied against Eskom’s much higher request, were quick to criticise Nersa.
“The Democratic Alliance firmly rejects the National Energy Regulator of South Africa’s (NERSA) approval of electricity tariff increases, including a staggering 12.74% for the 2025/26 financial year, followed by further hikes of 5.36% for 2026/27 and 6.19% for 2027/28,” the party’s spokesperson on Electricity and Energy Kevin Mileham said.
Blow
The news will come as yet another financial blow to South Africans with the fuel price set to rise yet again next week.
In some good news, the SARB on Thursday cut interest rates by 25 basis points.
Eskom electricity tariff hikes as below:
| Period | Application | Approved |
|---|---|---|
| 2025/2026 | 36.15% | 12.74% |
| 2026/2027 | 11.81% | 5.36% |
| 2027/2028 | 9.10% | 6.19% |
Good news that the hike wasn’t 36% or just more bad news for struggling South Africans?
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