South Africans will be paying 12,7% more for electricity as from the 01st of April 2025,  the National Energy Regulator (NERSA) announced on Thursday afternoon at an online media briefing. 

Speaking about the much – awaited decision, Thembeni Bukula, Chairperson of NERSA, said Eskom submitted three separate revenue applications (for the Generation Business, National Transmission Company of South Africa [NTCSA] and Distribution Business). Eskom requested R445 563 million, R495 355 million and R536 778 million for the 2025/26, 2026/27 and 2027/28 financial years, respectively. 

Based on Eskom’s application, the proposed standard tariff increases were projected at 36.15%, 11.81% and 9.10% over three years. 

But NERSA approved 12,7% for the current financial year 2025/2026. A 5,36% was approved for the next financial year (2026/2027) and about 6,19% for 2027/2028.

This equates to amounts of R384 610 million for 2025/26 financial year, R409 524 million for 2026/27 and R436 860 million, for the years 2027/28.

An amount of about R102 billion for 2025/26 was ringfenced for the newly formed transmission arm of Eskom, the NTCSA.  

Bukula said the 36% requested by Eskom, would have reduced productivity by 3,34%. 

Organizations have expressed relief at NERSA’s decision, but have cautioned against inflation. 

The Nelson Mandela Bay Business Chamber Chamber’s Denise van Huyssteen, said “we are relieved that the National Energy Regulator has approved an increase of 12.7% for the 2025/26 period, below the 36% which was requested.   However this is almost double the inflation rate and will drive inflation in other areas such as food and fuel, and will also increase the overall cost of operating businesses in the country.”

The Green Connection’s Strategic Lead, Liziwe McDaid says, “the Green Connection appreciates that the National Energy Regulator of South Africa (NERSA) seems to have taken into account the many people who took the time to attend the hearings to speak out against Eskom’s unreasonable request to increase electricity prices by 36%, which would have been unaffordable for most South Africans. It is important to note that Nersa has agreed to only allow Eskom to raise prices by 12.7% – about a third of what they wanted, which we believe is the result of every day South Africans raising their voices about issues that affect them and their fellow citizens.”

In addition, McDaid said South Africa urgently needs a national stakeholder engagement process to ensure electricity pricing and policies are fair, particularly for low-income households.

She also said that the current electricity system and pricing mechanisms are outdated. 

The South African Local Government Association (SALGA)’s Nhlanhla Ngidi, also expressed relief at NERSA’s decision. 

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