Dear Editor
The Democratic Alliance strongly condemns the recent announcement by the National Energy Regulator of South Africa (NERSA) of a R54 billion settlement with Eskom, arising from errors in its tariff determination under MYPD6.
The DA has sent a letter to the chairperson of the Portfolio Committee on Electricity and Energy requesting an urgent review of the settlement agreement between Eskom and NERSA.
This so-called “mistake” means that South Africans, struggling under the weight of high electricity costs and a fragile economy, will now face additional tariff hikes of 3.4% in 2026/27 and 2.64% in 2027/28 – on top of the already steep increases previously approved. Businesses, municipalities, and households will once again be forced to pay for the incompetence of the regulator and the inefficiency of Eskom.
It is unacceptable that a technical error in the calculation of depreciation and the Regulatory Asset Base could result in such a massive financial burden being shifted onto consumers. This points to systemic failures within NERSA’s processes and calls into question the credibility of its regulatory oversight.
South Africans deserve answers. The DA calls on Parliament’s Portfolio Committee on Energy and Electricity to urgently investigate how this error occurred, why it was not detected earlier, and what safeguards will be put in place to ensure that similar blunders are never repeated.
Moreover, this incident highlights the pressing need for government to finalise and implement a modernised National Electricity Pricing Policy. Without such a framework, tariff determinations will remain opaque, inconsistent, and open to costly disputes – with consumers ultimately footing the bill.
The DA will continue to fight for affordable, transparent, and fair electricity pricing. We cannot allow South Africans to be punished for regulatory incompetence.
Regards
Kevin Mileham MP
DA Spokesperson for Electricity and Energy