Eskom and the National Energy Regulator of South Africa (NERSA) recently concluded a high stakes agreement over a revenue shortfall that was edging dangerously close to R100 billion. The outcome? A R54 billion settlement—lower than Eskom’s claim, but still set to impact your electricity bill significantly. Let’s break it down.
At the start of 2025, NERSA approved Eskom’s allowable revenues for three financial years under its Sixth Multi Year Price Determination (MYPD6):
Eskom filed a judicial review, arguing a revenue shortfall of around R107 billion—citing a data input error in NERSA’s calculations specifically affecting depreciation and the Regulatory Asset Base (RAB) in its generation business.
After assessing Eskom’s case, NERSA identified genuine errors and agreed to a corrected figure: Eskom was indeed entitled to an additional R54 billion over three years—not the full R107 billion claimed.
The parties settled on 30 July 2025, opting for negotiation instead of prolonged court proceedings.
NERSA confirmed there will be no extra increase for 2025/26. But for the next two years:
These increases are contingent on court approval and still go through NERSA’s Regulatory Clearing Account (RCA) process.
Direct Eskom Customers:
If you purchase power directly from Eskom, expect your electricity bill to climb by about 8.76% come April 2026, and by 8.83% from April 2027.
Municipal Customers:
Municipalities will likely pass on these hikes via their tariff books. Management of cross subsidies, local budgeting, and municipal financial health will influence the extent of the increase you see—but ultimately, households and businesses will feel the pinch.
Some worry these mounting increases will compound already dire affordability challenges and create fiscal stress on municipal services.
Adopting efficiency measures and clean energy solutions can provide both financial relief and resilience in a shifting energy landscape.
