There have been mixed reactions from ratepayers following the National Energy Regulator of South Africa (Nersa) approving a significant 12.7% increase in electricity tariffs for the 2025/2026 financial year on Thursday. Mixed reactions from ratepayers following the National Energy Regulator of South Africa approving a significant 12.7% increase in electricity tariffs. File Picture: Henk Kruger. Independent Newspapers
There have been mixed reactions from ratepayers following the National Energy Regulator of South Africa (Nersa) approving a 12.7% increase in electricity tariffs for the 2025/2026 financial year on Thursday. On Friday following the announcement, Eskom Group CEO, Dan Marokane, announced an alert indicating a high risk of loadshedding at short notice.
Nersa chairperson Thembani Bukula said that for the 2025/26 financial year, the Energy Regulator has approved revenues of R384 610 million translating to a percentage increase of 12.7%.
“For the 2026/27 financial year, the Energy Regulator has approved revenues of R409 524 million, translating to a percentage increase of 5.36%. This decision is not taken lightly; the Energy Regulator acknowledges the challenges consumers face while striving to keep electricity affordable and ensure Eskom’s financial sustainability.”
Anthony Waldhausen, of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC), said they are opposed to these increases and question why they have to fund the corruption and poor management at Eskom. “Each year we experience these tariff increases, but we do not see any improvements at Eskom. We need the national minister to enforce payment from defaulting municipalities regarding their ballooning debt to Eskom.”
Waldhausen added that this way, if Eskom has the funds owing to them, they would not need to increase tariffs, which impact residents negatively. “The tariff increase will impact residents negatively as household goods and food would increase substantially. Residents are in dire financial constraints at the moment and are unable to survive on what income they have.”
Deputy chairperson of the Westville Ratepayers Association and eThekwini Ratepayers Protest Movement, Rose Cortes, said that while they are pleased to see that Nersa rejected the requested tariff of close to 37% they still believe that the approved tariff is tone deaf.
“The ERPM presented our objection to their proposed increase to Nersa; we presented the outrageous contrast between their expectations and the CPI, actual non-government worker salary increases, and what they were trying to impose. This preliminary year of approval for 12.7% still far exceeds what the average consumer can squeeze out of their already stretched budgets.”
eThekwini Ratepayers and Residents Association (ERRA) chairperson Ish Praladh said that although Nersa has approved a much lower increase, Eskom ratepayers and residents are still going to be hard hit. “Remember the billing system is still in shambles, the economy is in trouble. Unemployment is very high. Nersa should have listened properly to the people's plight and done a 5% blanket increase for each financial year.”
South Durban Community Environmental Alliance (SDCEA) said that the 12.7% tariff increase approved by Nersa for Eskom will inevitably place a heavy burden on already marginalised communities. “SDCEA has been at the forefront of advocating for affordable, reliable, and clean electricity for working-class and marginalised poor communities, particularly in areas like Merebank, Phoenix, Chatsworth, Bonella, Kwamakutha, Umlazi, and other parts of Durban.”
SDCEA added that for years, these communities have been advocating for affordable electricity, with the SDCEA leading the charge since 2008. “We call on Nersa to report back publicly to communities who provided submissions and opposed the increases above inflation. This increase granted by Nersa stands to have a serious impact on the working class and poor communities of this country.”
Allison Schoeman, the vice chair of Bluff Ratepayers and Residents Association, said that she welcomes Nersa’s decision to significantly reduce Eskom’s initially proposed 36.15% tariff increase for the 2025/26 financial year to a more restrained 12.7%. “This reduction is a direct result of overwhelming public opposition and active citizen engagement during the consultation process.”
Ruse Moleshe, the managing director of RUBK, an energy and infrastructure consulting and advisory company, said Nersa granted Eskom lower tariffs than they applied for. “The reasons advanced include: reducing the valuation of Eskom assets to below a trillion (whereas Eskom had assumed a figure above this), which impacted the return on assets. Assumptions about diesel use were revised downward as Nersa anticipates less need for peaking power due to the stabilisation of the generation plants (Eskom assumed a load factor of 6% reduced to 4%). Coal costs were allowed.”
Moleshe added that Nersa assumed that the Eskom generation recovery plan will continue to yield positive results. “Eskom would operate efficiently, reaching an Energy Availability Factor of 75%, and improve unplanned outages to around 13% of overall plants. Thus, increasing sales and revenue. Consequently, they maintained the costs for operation and maintenance of plants. Nersa expects Eskom to operate efficiently, thus reducing operational costs and improving sales.”
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