The increase is set to come into effect on April 1, 2025. “This is never an easy task,” said Nersa’s chairperson in a statement.
The decision by the National Energy Regulator South Africa (Nersa) to grant Eskom a 12.74% tariff increase for 2025/2026 "is not taken lightly", said chairperson Thembani Bukula in a statement.
"The energy regulator recognises the challenges consumers face and the importance of ensuring that electricity remains affordable, while securing Eskom’s financial sustainability," said Bukula.
"Our challenge has been and remains to regulate the energy industry in a manner that balances the interests of energy producers on the one hand and those of consumers on the other.
"This is never an easy task, for inevitably, it is influenced by the greater economic environment, both locally and internationally, and as directed by the policy environment of the Government.
He said Nersa appreciated the active participation and valuable contributions from all stakeholders during the decision-making process.
"Your inputs have been instrumental in shaping our decision, and we look forward to continuing our engagements as we work towards a sustainable energy future for South Africa."
Nersa increase is set to come into effect on April 1, 2025.
The percentage increase for 2026/27 is 5.36% and for 6.19% for.the 2027/28 financial year.
The approval of the tariff increase comes at a pivotal moment when Eskom is still grappling with extensive infrastructure issues, maintenance delays, and the ever-looming threat of load shedding.
By ensuring that Eskom's financial health is bolstered through a higher tariff, Nersa said it was striving to safeguard South Africa's energy stability.
This increase, however, is likely to stir further debate among consumers and businesses, many of whom are already feeling the pinch from previous hikes and ongoing economic pressures
Critics argue that continuous tariff increases could lead to greater financial strain on households and small enterprises struggling to afford rising costs of living.
In light of this 12.74% increase, stakeholders will be watching closely how Eskom applies these funds to improve its infrastructure and resolve persistent service delivery issues.
The regulator’s decision underscores the delicate balance between maintaining a viable power utility and addressing the financial realities faced by consumers, who also demand reliable service and energy security.
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