South African households and businesses could face higher electricity costs in the near future as the National Energy Regulator of South Africa (NERSA) moves ahead with adjustments to Eskom’s electricity tariffs. Under the current Multi-Year Price Determination (MYPD6), NERSA has already approved significant increases, with Eskom customers seeing an average hike of more than 12% in the latest financial year, while municipalities implemented their increases later. Further adjustments remain under consideration.
The renewed concern follows the discovery of a calculation error in NERSA’s original tariff decision, which resulted in Eskom’s allowable revenue being under-estimated by billions of rand. To correct this, the regulator is reviewing whether Eskom should be allowed to recover the shortfall over the next few years — a move that could translate into higher-than-expected annual electricity price increases if approved.
NERSA has defended the process, saying it is legally required to ensure Eskom remains financially sustainable while also protecting consumers. Eskom’s ageing infrastructure, high operational costs, debt burden and the need to maintain power supply all factor into tariff decisions. However, critics argue that repeated increases place additional pressure on households already struggling with rising living costs and may discourage economic growth.
Public consultations and legal processes are still underway, meaning final decisions have not yet been implemented. For now, South Africans are being warned to prepare for the possibility of further electricity price hikes, depending on the outcome of NERSA’s review and court rulings in the months ahead.