Eskom's R54bn additional revenue: New electricity tariff hikes for 2026, 2027

Electricity consumers will be saddled with price hikes of 8.76% in the 2026/27 financial year, effective from April 1, and 8.83% for the 2027/28 financial year after the National Energy Regulator of South Africa (Nersa) has finalised its redetermination of allowable revenue for Eskom.

The tariff increases had to be redetermined after there was an error in Nersa's calculations regarding Eskom's revenue. 

Eskom and Nersa then agreed to correct this and confirmed a settlement with Eskom with an amount of R54 billion mentioned.  They approached the Gauteng High Court to have this settlement agreement made an order of the court but the court in December rejected the agreement and ordered that there be public consultation on the matter.

In its public consultation document, Nersa mentioned an amount of R76 billion sparking fears that tariff increases could be much higher however the regulator has indicated that the approved allowable revenue remains at R54.7 billion.

“The impact on the Eskom price would be additional increases of 3.4% and 2.64%,respectively, resulting in an increase of 8.76% for 2026/27FY and 8.83% for 2027/28FY. The phased approach limits additional price impacts to single digit increases in 2026/27 and 2027/28, and avoids any retrospective adjustment for 2025/26, in line with the court judgment. It further reduces tariff volatility and demand erosion risk, and balances Eskom’s financial sustainability with customer affordability.” 

Nersa added that it had taken into account public comments received from a range of parties including Eskom, organised industry, agriculture, mining, business groupings, civil society organisations, municipalities, and individual members of the public.

The tariff increases which come into effect in April 2026 are for municipalities and direct Eskom customers. For customers who are supplied electricity by municipalities, the tariff increases could be even higher as municipalities decide on the hikes based on their budgetary considerations. 

The electricity tariff hikes for consumers in municipalities will come into effect on July 1, 2026.

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