The DA is demanding answers after NERSA admitted it erred in its tariff determination with Eskom, which could result in higher tariffs over the next three years.

NERSA released a statement on Wednesday night announcing it had reached a R54 billion settlement with Eskom.

The power utility initially cited a revenue shortfall of R107 billion, following the Sixth Multi-Year Price Determination (MYPD6) revenue decision for 2025/26, 2026/27 and 2027/28.

Eskom had then lodged a judicial review of the Energy Regulator’s decision. NERSA said the parties settled for R54 billion on 30 July, admitting errors in its calculations of the original MYPD6.

As a result, tariff hikes for the 2026/27 and the 2027/28 financial years are likely to be around 8.7% and 8.8%, respectively, instead of the 5.4% and 6.2% previously approved.

There will be no additional price increase for the current financial year.

DA energy spokesperson Kevin Mileham says the blunder exposes serious failures at NERSA and will unfairly burden households, businesses, and municipalities.

“This so-called “mistake” means that South Africans, struggling under the weight of high electricity costs and a fragile economy, will now face additional tariff hikes of 3.4% in 2026/27 and 2.64% in 2027/28 – on top of the already steep increases previously approved. Businesses, municipalities, and households will once again be forced to pay for the incompetence of the regulator and the inefficiency of Eskom.”

The DA has sent a letter to the chairperson of the Portfolio Committee on Electricity and Energy requesting an urgent review of the settlement agreement between Eskom and NERSA.

“South Africans deserve answers. The DA calls on Parliament’s Portfolio Committee on Energy and Electricity to urgently investigate how this error occurred, why it was not detected earlier, and what safeguards will be put in place to ensure that similar blunders are never repeated.”

NERSA has defended the settlement, arguing it avoids prolonged litigation and that a phased implementation mitigates immediate tariff shocks to consumers.

It says the decision also reflects the Energy Regulator’s ability to correct technical underestimations while maintaining transparency and accountability.

NERSA Full-Time Regulator Member Responsible for Electricity Regulation Nomfundo Maseti said:

“This settlement agreement represents a fair and balanced resolution. It safeguards the interests of South African electricity consumers while addressing Eskom’s legitimate revenue requirements to ensure operational sustainability – both achieved by the pragmatic settlement agreement. The Energy Regulator will continue to apply rigorous regulatory oversight to guarantee that all revenue allowances are efficiently utilised for the benefit of the electricity supply industry and the economy at large.”

The Energy Regulator also stated that, as this is a judicial review consideration, NERSA cannot undertake the public participation process normally followed when considering applications.