Nersa says Eskom can increase charges more than previously approved
South Africa's energy regulator said on Sunday that it granted State utility Eskom larger electricity rate increases for its next two financial years than originally set after admitting errors in its earlier calculations.
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.
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 reached a settlement 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.
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