NERSA’s R54 Billion Tariff Blunder

Statement by Kevin Mileham MP – DA Spokesperson on Electricity & Energy:

The DA is fighting to oppose higher electricity prices for all South Africans.

The Democratic Alliance (DA) welcomes confirmation from the Office of the Public Protector that it has received a comprehensive response from the National Energy Regulator of South Africa (NERSA) regarding our complaint of maladministration lodged in September 2025.

On 2 February 2025, the Public Protector’s office confirmed that it is now actively considering the evidence and will provide a further update in due course.

The DA lodged this complaint following NERSA’s admission that “clerical errors” in its Sixth Multi-Year Price Determination (MYPD6) calculations resulted in a R54 billion shortfall that will be recovered directly from South African electricity consumers via increased tariffs. NERSA admitted that a “data input error” affected depreciation calculations and the Regulatory Asset Base. NERSA then decided to settle this error with Eskom behind closed doors without any public consultation. Following a High Court ruling in December, this R54 billion error has now ballooned to R76 billion.

This R76 billion error represents a staggering failure of NERSA’s fundamental mandate, which is to protect consumers. South Africans are likely to face tariff increases of 8.76% and 8.83% in the coming years instead of the originally projected 5.36% and 6.19%. These additional tariff increases are directly because of NERSA’s incompetence.

The DA maintains that errors of this magnitude cannot simply be dismissed as administrative mistakes. They point to systemic failures in NERSA’s quality assurance and internal controls that demand accountability.

We will continue to monitor this investigation closely and keep South Africans informed of developments. The Public Protector’s investigation must determine whether NERSA’s conduct constitutes maladministration requiring remedial action.