NERSA’s full-time electricity regulator Nhlanhla Gumede suspended

News flash

• South Africa’s electricity and energy minister, Dr Kgosientsho Ramokgopa, has suspended NERSA’s full-time electricity regulator, Nhlanhla Gumede.

The suspension is “pending the outcome of an independent enquiry” said spokesperson for the ministry, Tsakane Khambane “The minister is applying himself to an acting appointment and will announce once that nominee has been approached and accepted,” added Khambane.

Mr Nhlanhla Gumede was appointed as Full-Time Regulator Member primarily responsible for Electricity Regulation at NERSA, with effect from 1 April 2020. He has been critical of the methodology NERSA uses to set electricity tariffs calling it ‘outdated’. He introduced the Electricity Price Determination Rules in December last year which NERSA initially adopted but then rescinded the decision saying it was unworkable and very risky.

NERSA recently announced the timelines to process Eskom’s sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.Eskom’s revenue application amounts to R446bn for the 2025/26 financial year, R495bn for the 2026/27 financial year and R537bn for the 2027/28 financial year. This means the proposed average price increases for Eskom direct customers are 36.15% (1 April 2025 to 31 March 2026), 11.81% (1 April 2026 to 31 March 2027) and 9.10% (1 April 2027 to 31 March 2028). Read more

Author: Bryan Groenendaal