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Electricity and Energy Ministry notes NERSA electricity tariff decision

Electricity and Energy Ministry notes NERSA electricity tariff decision

The Ministry of Electricity and Energy has expressed its confidence in the National Energy Regulator of South Africa (NERSA) – highlighting the regulator’s ability to maintain “independence and integrity” while balancing the diverse interests involved in electricity tariff decisions.

This following NERSA’s announcement of its decision on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.

The regulator approved a 12.74% price hike for electricity starting at the beginning of the 2025/26 financial year in April 2025.

For 2026/27, NERSA greenlit increases of some 5.36% with a further increase of 6.19% from the start of the 2027/28 financial year.

Electricity and Energy Minister, Dr Kgosientsho Ramokgopa said: “We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and businesses, helping to stabilise the broader economic environment”.

Independent regulator

The Electricity and Energy department expressed confidence in the regulator’s ability to fulfil its mandate.

“We reaffirm our confidence in the independence and integrity of NERSA in fulfilling its mandate to ensure that electricity pricing balances the financial sustainability of Eskom with the economic realities faced by households, businesses, and industries.

“Whilst the approved tariff adjustments will place pressure on Eskom to stay the course with its investment strategy to strengthen and modernise its generation, transmission and distribution infrastructure, the Ministry remains committed to working closely with Eskom to drive greater efficiency gains. 

“This will ensure that operational improvements and cost reductions contribute to the utility’s long-term financial sustainability while safeguarding the affordability and reliability of electricity supply,” the department said.

Furthermore, in recognition of rising energy concerns, the department will “continue introducing measures to provide relief to vulnerable households and small businesses to cushion them from rising electricity costs”.

“As part of our broader energy strategy, the government remains committed to pursuing an energy mix that delivers affordable, secure, and sustainable electricity for all South Africans, in line with our decarbonisation commitments and long-term energy security goals. 

“We call on all stakeholders to engage constructively in shaping our energy future, ensuring a transition that is inclusive, just, and responsive to South Africa’s developmental needs. 

“The Ministry will continue working towards long-term energy affordability and reliability, ensuring that no South African is left behind in the country’s energy transition,” the department concluded. – SAnews.gov.za

NeoB
Fri, 01/31/2025 – 08:34

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The Ministry of Electricity and Energy has expressed its confidence in the National Energy Regulator of South Africa (NERSA) – highlighting the regulator’s ability to maintain “independence and integrity” while balancing the diverse interests involved in electricity tariff decisions.

This following NERSA’s announcement of its decision on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.

The regulator approved a 12.74% price hike for electricity starting at the beginning of the 2025/26 financial year in April 2025.

For 2026/27, NERSA greenlit increases of some 5.36% with a further increase of 6.19% from the start of the 2027/28 financial year.

Electricity and Energy Minister, Dr Kgosientsho Ramokgopa said: “We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and businesses, helping to stabilise the broader economic environment”.

Independent regulator

The Electricity and Energy department expressed confidence in the regulator’s ability to fulfil its mandate.

“We reaffirm our confidence in the independence and integrity of NERSA in fulfilling its mandate to ensure that electricity pricing balances the financial sustainability of Eskom with the economic realities faced by households, businesses, and industries.

“Whilst the approved tariff adjustments will place pressure on Eskom to stay the course with its investment strategy to strengthen and modernise its generation, transmission and distribution infrastructure, the Ministry remains committed to working closely with Eskom to drive greater efficiency gains. 

“This will ensure that operational improvements and cost reductions contribute to the utility’s long-term financial sustainability while safeguarding the affordability and reliability of electricity supply,” the department said.

Furthermore, in recognition of rising energy concerns, the department will “continue introducing measures to provide relief to vulnerable households and small businesses to cushion them from rising electricity costs”.

“As part of our broader energy strategy, the government remains committed to pursuing an energy mix that delivers affordable, secure, and sustainable electricity for all South Africans, in line with our decarbonisation commitments and long-term energy security goals. 

“We call on all stakeholders to engage constructively in shaping our energy future, ensuring a transition that is inclusive, just, and responsive to South Africa’s developmental needs. 

“The Ministry will continue working towards long-term energy affordability and reliability, ensuring that no South African is left behind in the country’s energy transition,” the department concluded. – SAnews.gov.za

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