South African consumers will have to brace for another blow to their cost of living, as the National Energy Regulator of South Africa (NERSA) has approved a 12.74% electricity price hike for Eskom, set to take effect in the next financial year.
The regulator has also approved further hikes of 5.36% for 2026/27 and a further increase of 6.19% for the 2027/28 financial year.
The decision comes as part of Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27, and 2027/28 financial years, which was announced on Thursday afternoon.
Tough balancing act
NERSA Board Chairperson, Thembani Bukula, described the complexity of the decision-making process as a “delicate balancing act” of “conflict” that took into account the needs of all stakeholders.
“We are required to ensure that Eskom is sustainable within the short and the long term. At the same time, we are required to ensure that the electricity services that Eskom provides are affordable.
“This is never an easy task. For inevitably, it is also influenced not just by our methodologies and rules but by the greater economic environment both locally and internationally. We remain guided and directed by the policies and the legislation of this country,” Bukula said.
A question of affordability
Last year, Eskom applied to NERSA for increases of 36% in 2025/26, 11.81% in 2026/27, and 9.1% for the financial year 2027/28.
This proposal sparked significant public and business outcry, with many deeming the increases unaffordable.
Bukula highlighted that the regulator took extensive steps to ensure that public participation inputs from all stakeholders were considered.
Stakeholder meetings and public hearings were held with written submissions also accepted by the regulator.
“During this process, we received various inputs from the stakeholders who came to our presentations as well as inputs that we got from the written comments. Top of the list was the affordability of electricity if the prices applied for by Eskom were approved. This was voiced by domestic customers as well as the business customers.
“Domestic customers stressed the fact that if these prices are approved, they then have to choose between buying food or buying electricity. Businesses on the other side made it clear that if these increases are approved, a lot of them would be forced to close their businesses,” he said.
The first price hike is set to be implemented on 1 April 2025. – SAnews.gov.za
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