Zuko Komisa
The national energy regulator, Nersa, has approved a 12.7% rise in Eskom electricity pricing for 2025, effective April 1, 2025.
Nersa chairperson Thembani Bukula announced that the Energy Regulator also approved increases of 5.36% and 6.19% for Eskom’s 2026/27 and 2027/28 financial years. The proposed price increases are significantly higher than inflation, which is now at 3% and is expected to average 4.5% by 2024.
‘We believe that this decision strikes a necessary balance between the needs of Eskom and the financial realities of consumers. We appreciate the contributions from all stakeholders during this process and look forward to continuing our engagements as we work towards a sustainable energy future for South Africa’, said Mr Thembani Bukula, the Chairperson of NERSA.
The approved hikes are lower than what Eskom sought and requested for during the Multi-Year Price Determination (MYPD6) period.
Eskom officially submitted its MYPD6 for 2025, 2026, and 2027 in September 2024, aiming for a 66% tariff hike throughout the period, with the majority of the increase coming in 2025.
The Ministry of Electricity and Energy welcomed the announcement, but noted that the lower-than-expected tariffs would likely put pressure on Eskom to stick to its planned investment strategy to enhance and modernize its generation, transmission, and distribution facilities.
Dr. Kgosientsho Ramokgopa, Minister of Electricity and Energy on the other hand, claimed that the authorized tariff reductions demonstrated a consideration for the need to reduce inflationary pressures on communities and companies. He also stated that the government would implement further steps to help impoverished consumers and small businesses, but did not provide specifics.
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Written by: Zuko
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