South Africans are set to feel the pinch as the National Energy Regulator of South Africa (NERSA) approves Eskom’s electricity tariff increases for the 2026/27 financial year.
From 1 April, households and businesses who buy directly from Eskom will face an average 8.76% rise, while municipalities purchasing power will see a 9.01% increase from 1 July.
For many families already grappling with rising living costs, the new tariffs will hit wallets hard. NERSA says the increases come after extensive stakeholder consultations and are designed to ensure transparency in electricity pricing, while allowing Eskom to recover its allowed revenue.
Spokesperson Charles Hlebela says the difference in percentages between direct and municipal customers is a result of differing implementation dates for Eskom direct customers and for municipalities.
“According to the Eskom Retail Tariffs and Structural Adjustment (ERTSA) Methodology, Eskom must recover the full allowed revenue within its financial year, which is from April to March. However, the municipal financial year is from July to June.”
The steep increases are also attributed to an error in NERSA’s Price determination, which was originally set for 5% and 6%, respectively.
While regulators frame the hike as a necessary step to keep the national power utility financially viable, consumers will have to tighten their belts and rethink their electricity use as the cost of keeping the lights on rises yet again.
