The National Energy Regulator of South Africa (NERSA) has set the record straight concerning the dispute between itself and Eskom.
Eskom wants R107 billion, the difference between what it applied for and what was approved, in its Sixth Multi-Year Price Determination (MYPD6) for the Financial Years- 2025/26, 2026/27 and 2027/28.
In a statement, NERSA said it approved revenues of R384 610 million for the 2025/26 financial year, which translates to a percentage increase of 12.74%.
About R409 524 million, was approved for the 2026/27 financial year, which makes up to a percentage increase of 5.36%.
About R436 860 million was approved by the regulator for the 2027/28 financial year, a 6.19% increase.
After much discussion, NERSA, said it identified errors, which resulted in the underestimation of certain components of Eskom’s application, specifically an error on the depreciation amount.
The error led to a shortfall of R14 514 million.
As a result, the parties settled for R54 billion on 30 July 2025.
So will there be a public participation process regarding the matter?
Charles Hlebela, Spokesperson of NERSA, said “it is important to note that, as this is a judicial review consideration, NERSA cannot undertake the public participation process normally followed when considering applications. The settlement between Eskom and NERSA can only be effective after it has been made an order of the court, which has not yet been secured.”
About R12 000 million will be recovered during the 2026/27 financial year, R23 013 million, during the 2027/28 financial year.
The balance will be addressed in the next MYPD determination cycle, culminating in
8,83% increase for the financial year 2026-2027.
Nomfundo Maseti, NERSA’s Full-Time Regulator Member Responsible for Electricity Regulation, said “this settlement agreement represents a fair and balanced resolution. It safeguards the interests of South African electricity consumers while addressing Eskom’s legitimate revenue requirements to ensure operational sustainability – both achieved by the pragmatic settlement agreement.”
She also said the Energy Regulator will continue to apply rigorous regulatory oversight to guarantee that all revenue allowances are efficiently utilised for the benefit of the electricity supply industry and the economy.