The National Energy Regulator of South Africa (Nersa) has officially confirmed that the average tariff increase for Eskom direct customers will rise by 8.76% on April 1 and by 9.01% for municipalities on July 1.

The confirmation follows the March 5 approval by the Energy Regulator, Nersa’s highest decision making structure, of the Eskom Retail Tariffs and Structural Adjustment (ERTSA) application.

The hikes are higher than those approved for 2026/27 as part of the sixth multiyear price determination (MYPD6) revenue decision, having been adjusted to take account of a R54.7-billion error made by the regulator when calculating Eskom’s regulatory asset base.

Nersa initially announced a behind-closed-doors settlement agreement with Eskom last year in relation to the error, but was ordered by the High Court in December to redetermine the amount only after having conducted a public consultation process.

The regulator initiated consultations and completed a redetermination on February 7, when it announced that the R54.7-billion would be recovered by Eskom in the tariff over three financial years, starting with a recovery of R12-billion in the 2026/27 financial year.

A further R23-billion will be recovered in 2027/28, while the R19.7-billion balance would be recouped as part of the next MYPD period.

As a result, Nersa confirmed that the tariff for direct Eskom customers would rise on April 1, 2026, by 8.76% rather than the 5.36% approved previously, and by 8.83% on April 1, 2027, instead of the 6.19% outlined in the initial MYPD6 determination.

The decision was based on a ERTSA application submitted to Nersa on February 10.

Nersa said the difference in percentages between direct and municipal customers arose as a result of differences in implementation dates for Eskom direct customers and for municipalities.

“According to the ERTSA methodology, Eskom must recover the full allowed revenue within its financial year, which is from April to March. However, the municipal financial year is from July to June,” the regulator explained in a statement.

It added that the decision had taken into consideration the comments raised by stakeholders, and said those comments and a reasons-for-decision document would be published in due course on its website.