NERSA Error Means Higher Electricity Hikes for SA Consumers

SOUTH AFRICA

South African households face steeper electricity price hikes in 2026 and 2027 after the National Energy Regulator (NERSA) admitted a critical error in its tariff calculations.

NERSA acknowledged a data input mistake regarding depreciation and the Regulatory Asset Base (RAB) led to underestimating Eskom’s required revenue. (NERSA admission)

The regulator had earlier approved these annual increases: 12.74% for 2025/26, 5.36% for 2026/27, and 6.19% for 2027/28.

Following Eskom’s judicial review showing a R107 billion shortfall, NERSA corrected its figures and identified a R54 billion gap over three years. (Eskom filing)

A settlement agreement awaiting court approval now includes added increases: 3.40 extra percentage points in 2026/27 (new total: 8.76%) and 2.64 points in 2027/28 (new total: 8.83%).

The remaining shortfall will be recovered during the next pricing cycle starting 2028. (Settlement terms)

While 2025/26 prices remain unchanged, the extra hikes will pressure consumers. Analysts warn this may push inflation above the Reserve Bank’s 3% target. (Economic analysts)

NERSA stated the increases are phased “to avoid sudden tariff shocks,” but critics cite systemic inefficiencies. (NERSA statement)