- Eskom will ask SA’s energy regulator for an electricity tariff increase of 36.15% in 2025 for customers.
- The draft document is the first of many steps that Eskom is required to follow in Nersa’s revenue application process,
Eskom will ask South Africa’s energy regulator for an electricity tariff increase of 36.15 per cent in 2025 for customers it directly charges and supplies. Customers relying on electricity supply from local authorities (municipalities) could also be slapped with an increase of 43.55 per cent.
Eskom plans to apply for an increase of up to 44 per cent in the electricity tariffs it charges customers, and if the power utility has its way, the increase could be implemented as early as April 2025.
This was revealed from Eskom’s draft document detailing increases in electricity tariffs for its financial years from 2026 to 2028, which it plans to submit to the National Energy Regulator of South Africa (Nersa). The May 2024 document also details the revenue Eskom wishes to generate from the tariff increases.
The draft document is the first of many steps that Eskom must follow in Nersa’s revenue application process. After a lengthy public comment and hearing process, this will determine the average price of electricity for consumers.
In the draft document, Eskom wants to ask Nersa for an increase in the standard tariff it charges non-municipal customers of 36.15 per cent during its financial year 2026, 11.81 per cent in 2027 and 9.10 per cent in 2028. These customers are directly charged by Eskom and supplied electricity by the power utility.
Customers relying on electricity supply from local authorities (municipalities) would also be hit hard as Eskom is considering increases of 43.55 per cent in 2026; 3.36 per cent in 2027 and 11.07 per cent in 2028, with the first increase set to be implemented on 1 July 2025.
These large increases would allow the company to potentially generate revenue (by charging customers for electricity usage) of R446 Billion, R495 Billion, and R537 Billion for 2026, 2027, and 2028, respectively.
The entity wants to convince Nersa again to award it tariff increases that reflect its costs to generate, transmit, and distribute (though its role in this matrix will soon change).
However, Nersa has disagreed with Eskom for many years on its tariff wishes and the revenue it should generate from charging customers for electricity. This has resulted in the regulator often approving a significantly lower tariff for Eskom than the power utility desired.