The National Energy Regulator of South Africa (NERSA) has authorised a 9.01% tariff increase on electricity effective from 1 July 2026 to 30 June 2027 for municipal electricity distributors (NERSA press release, 12/03/2026). The announcement follows NERSA’s approval of the Eskom Retail Tariffs and Structural Adjustment (ERTSA) application in early March 2026.
The increase is higher than the 5.36% increase expected and approved on the sixth multiyear price determination (MYPD6) revenue decision, since it has been adjusted to correct a ZAR54.7bn (USD2.8bn) error made when calculating Eskom’s regulatory asset base. NERSA determined to conduct a public consultation, after being ordered by the South African High Court, determining that the ZAR54.7bn would be recovered by Eskom through its electricity tariff over three financial years.
In the 2026-2027 financial year, Eskom is expected to recover ZAR12bn (USD710m) through an increase of its tariffs. Direct Eskom customers are to expect an 8.76% increase starting on 1 April 2026, and a further 8.83% hike on 1 April 2027 (instead of the previously approved 6.19%).
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