- NERSA approves an 8.76% tariff increase for Eskom direct customers.
- Municipal electricity tariffs to rise by 9.01% due to different financial year timelines.
- New tariffs to take effect from April 2026 for Eskom customers and July 2026 for municipal customers
The National Energy Regulator of South Africa (NERSA) has approved the Eskom Retail Tariffs and Structural Adjustment application for the 2026 to 2027 financial year, paving the way for electricity tariff increases across the country.
The regulator confirmed that Eskom direct customers will face an average tariff increase of 8.76%. Municipal customers, which purchase electricity from Eskom and resell it to end users, will see an average increase of 9.01%.
The 8.76% tariff adjustment will be implemented from 1 April 2026 to 31 March 2027 for Eskom direct customers. The 9.01% increase for municipalities will take effect from 1 July 2026 to 30 June 2027 in line with the requirements of the Municipal Finance Management Act, 2003.
NERSA said the difference in the approved percentage increases is driven by the different implementation timelines between Eskom and municipal financial years. Eskom is required to recover its full allowed revenue within its financial year, which runs from April to March, while municipalities operate on a financial year that runs from July to June.
The regulator determines Eskom’s allowed revenue through the Multi-Year Price Determination framework, which sets the utility’s revenue for a defined period. The annual allowed revenue during the MYPD period is based on projected average electricity demand.
As part of this framework, Eskom is required to submit an annual Retail Tariffs and Structural Adjustment application to NERSA outlining how the approved revenue will be allocated across different customer categories.
The latest application followed a court ordered redetermination process completed by NERSA on 7 February 2026 after a ruling issued on 21 December 2025. A controversial R54 billion settlement agreement between Eskom and the National Energy Regulator of South Africa (Nersa), over a ‘mistake’, was halted following pressure from civil rights group AfriForum. The agreement would have led to electricity tariff hikes of nearly 9% annually over three years. Read more
AfriForum successfully lobbied Eskom to move the case from the uncontested to the contested roll, opening the door for public participation and legal challenges. The organisation argued that the settlement lacks transparency and could be deemed unlawful and unreasonable.
A redetermination process has allowed Eskom to submit its tariff application for the 2026 to 2027 financial year on 10 February 2026 together with its proposed standard tariff schedule.
NERSA’s Retail Tariff Adjustment 2026/27 FY
NERSA said the application underwent a comprehensive stakeholder consultation process in line with the requirements of the Promotion of Administrative Justice Act, 2000, the National Energy Regulator Act, 2004 and the Constitution of South Africa.
The regulator added that its final decision took into account stakeholder submissions, including concerns about the impact of rising electricity tariffs on consumers.
Author: Bryan Groenendaal
