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PV Transact

Eskom implements NERSA approved electricity tariff increase for FY2027

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  • Average Eskom direct customer tariff to rise 8.76% (240.28c/kWh) from 1 April 2026.
  • Municipal bulk electricity tariffs to increase by an average 9.01% from 1 July 2026.

South Africa’s state owned power utility Eskom has confirmed it will implement electricity tariff adjustments for the 2026 to 2027 financial year following a determination by the regulator National Energy Regulator of South Africa.

The regulator approved an average electricity price increase of 8.76% for customers supplied directly by Eskom. The revised tariffs will take effect from 1 April 2026 for Eskom direct customers.

Municipalities that purchase electricity in bulk from Eskom will implement tariff increases averaging 9.01% from 1 July 2026. This timing aligns with requirements under the Municipal Finance Management Act, which stipulates that municipalities introduce tariff adjustments at the start of their financial year.

Eskom Group Chief Financial Officer Calib Cassim said the utility is working to keep future tariff adjustments within reasonable limits as it addresses affordability pressures on households and businesses.

Cassim said this objective will depend on disciplined financial management and improved operational efficiency across the utility.

NERSA Decision on tariff adjustment for FY 2027 for various customer categories. Image credit: Eskom

The approved tariff adjustment supports Eskom’s ability to maintain a stable and reliable electricity supply. Revenue collected through tariffs funds the generation, transmission and distribution of electricity while enabling the utility to maintain and invest in critical infrastructure.

The regulator considered both customer affordability and the long term sustainability of the power system when making its decision.

Eskom confirmed that subsidised tariffs remain in place for vulnerable customers. Homelight tariffs continue to receive support through the affordability subsidy charge, while rural tariffs remain subsidised to reflect higher network costs in remote areas.

These network related subsidies, including those benefiting Homelight customers, are recovered through the Electrification and Rural Subsidy charge and the low voltage charge. The measures are designed to ensure electricity remains accessible to low income and rural households.

The utility also reported progress in improving generation performance. Eskom said its energy availability factor reached 65.85% year to date for the period from 1 April 2025 to 12 March 2026. During the same period, the generation fleet achieved or exceeded 70% availability on 83 occasions.

Baseload units that operate continuously across the system have also stabilised significantly. Eskom said availability of these units improved from about 9% two years ago to more than 98% currently.

Eskom said it remains committed to transparent communication, strong financial discipline and ongoing operational improvements aimed at ensuring a dependable electricity supply across South Africa.

The detailed tariffs, as approved by NERSA, will be available on Eskom’s website. The link to access these tariffs is: https://www.eskom.co.za/distribution/tariffs-and-charges/

This is only applicable to customers that purchase electricity from Eskom.  Customers purchasing electricity from Municipalities will need to await communication from their Municipalities.

Author: Bryan Groenendaal

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