- Nersa has officially published Eskom’s multi-year revenue application, which includes hiking tariffs for direct customers by around 36 per cent next year.
- Nersa said Eskom’s application will be processed following all required procedures, which include assessment for regulatory compliance.
The National Energy Regulator of South Africa (Nersa) has officially published Eskom’s multi-year revenue application, which includes hiking tariffs for direct customers by around 36 per cent next year. Eskom’s controversial proposed electricity tariff increases for the next three years have gone out, and public submissions are open until 16:00 on November 1.
The utility submitted its application to Nersa in August for a proposed 36.15 per cent hike during its 2026 financial year, 11.81 per cent in 2027, and 9.10 per cent in 2028.
Eskom’s proposed tariff hike follows an almost 13 per cent hike in April. The hefty increase has already sparked controversy, with the Democratic Alliance (DA) launching a petition calling for the application to be rejected. So far, the petition has garnered more than 103,000 signatures.
Nersa said Eskom’s application will be processed following all required procedures, including an assessment for regulatory compliance. If the application is considered compliant, it will be processed according to the provisions of the National Energy Regulator Act, 2004 (Act No. 40 of 2004).
“In this regard, the application will be published for stakeholder comments and public consultation, emphasising transparency and public participation,” Nersa said.
The sixth multiyear price determination (MYPD6) confirms Eskom is making a total allowable revenue application of R446 billion for 2026, R495 billion for 2027, and R537 billion for 2026, which it applied for will be aimed at recovering what would have been determined as the allowable revenue.
Eskom’s application includes Regulatory Clearing Account (RCA) determinations, which allow the state-owned entity to recover revenues for a particular year if tariffs were too low. The money would be recovered in future tariffs, with Eskom applying for almost R24 billion for its 2022 year and R9 million for 2023. Nersa has yet to make determinations of these.
According to Nersa, Eskom’s application is premised on two processes. First, the current Eskom application is a revenue requirement that the regulator must consider in accordance with the Electricity Regulation Act, Multi-Year Price Determination Methodology, and stakeholder inputs through the public participation process.
“The end stage of the revenue requirement is what is termed allowable revenue. Allowable revenue is the amount Eskom will be entitled to recover in each financial year. It is fundamental to highlight that allowable revenue is not an increase to an individual customer/end-user tariff,” Nersa said.
The application also translates into tariff increases of 43.55 per cent for municipalities from July 1, 2025, an increase of 3.36 per cent from 1 July 2026, and a price increase of 11.07 per cent from July 1, 2027.