National Energy Regulator of South Africa
By Thobeka Makume
The National Energy Regulator of South Africa (Nersa) is set to announce its decision on Eskom’s prìoposed electricity tariff increase by the end of January 2025. Eskom has applied for a 36.15% increase for the 2025/26 financial year, followed by 11.81% for 2026/27 and 9.10% for 2027/28.
Eskom’s Application and Justification
Eskom’s Multi-Year Price Determination (MYPD6) application seeks to secure revenues of R446 billion for 2025/26, R495 billion for 2026/27, and R537 billion for 2027/28. The utility argues that these increases are essential to cover the rising costs of energy production, infrastructure maintenance, and servicing its substantial debt. Eskom’s General Manager for Regulation, Hasha Tlhotlhalemaje, stated that the application aims to “catch up” after previous regulatory decisions granted lower increases than requested, leading to financial shortfalls. 
Public Participation and Opposition
Nersa has conducted extensive public hearings across all nine provinces, allowing stakeholders, including political parties, community members, and civil society organizations, to voice their opinions. The proposed tariff hikes have been met with widespread opposition, with concerns about the impact on households and businesses already struggling with high electricity costs. Minister of Energy and Electricity, Dr. Kgosientsho Ramokgopa, warned that steep increases could have dire consequences, potentially leading to social unrest. 
Nersa’s Evaluation Process
Nersa’s evaluation of Eskom’s application has involved a thorough assessment of the utility’s financial requirements, stakeholder submissions, and the broader economic implications. The regulator extended the public hearing period to accommodate the high volume of information received and to seek further clarification on certain aspects of the application. Nersa spokesperson Charles Hlebela emphasized the importance of considering all inputs during the public participation process to ensure a balanced decision. 
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