Eskom announces an 8.76% electricity tariff increase following NERSA approval, effective April 1.
Image: File
Eskom, the nation’s power utility, has received the green light from the National Energy Regulator of South Africa (NERSA) to implement an average electricity tariff increase of 8.76% for the 2026/27 financial year.
The adjustment comes after the regulator’s decision on March 5, 2026, and will take effect from April 1, 2026, for customers who purchase electricity directly from Eskom.
Municipalities that buy electricity in bulk will implement their increases from July 1, 2026, averaging 9.01%, in line with the Municipal Finance Management Act.
Eskom said the increase is necessary to support the long-term sustainability of the electricity system while maintaining affordability considerations.
“We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognising the affordability pressures on both residential and business customers,” said Eskom Group Chief Financial Officer Calib Cassim.
Cassim added that achieving this goal depends on “disciplined financial management and finding smarter, more efficient ways of operating.”
According to Eskom, the tariff adjustment is aimed at ensuring the utility can continue to deliver stable electricity supply while covering the costs associated with generating, transmitting and distributing power.
“The tariff increase supports Eskom’s ability to provide a stable and reliable electricity supply,” the utility said.
“Eskom’s revenue requirement covers the cost of generating, transmitting and distributing electricity, while migrating towards a fair return needed to maintain and invest in critical infrastructure.”
The regulator also took into account the affordability of electricity for consumers and the long-term sustainability of the national power system when approving the increase.
Eskom further reassured customers that subsidised tariffs will remain in place, particularly for low-income households and rural communities.
“Homelight tariffs continue to be subsidised, with these subsidies recovered through the Affordability Subsidy Charge,” Eskom said.
It added that rural tariffs also remain subsidised due to higher network costs in those areas, with subsidies recovered through the Electrification and Rural Subsidy charge and the Low-Voltage charge.
The utility said these measures are intended to ensure electricity remains accessible and affordable for vulnerable households.
Eskom also highlighted improvements in the performance of its generation fleet over the past three years. The Energy Availability Factor (EAF) has risen to 65.85% year-to-date, while some baseload units that anchor the system have stabilised significantly.
“Over the past three years, Eskom has made steady progress in improving the performance of its generation fleet,” Eskom said, noting that baseload units have improved “from 9% availability two years ago to being available more than 98% of the time today.”
The utility said detailed tariff information approved by the regulator will be made available on its website, while customers who purchase electricity through municipalities will receive further communication from their local authorities regarding tariff changes.
Eskom said it remains committed to transparent communication and operational improvements to ensure a dependable electricity supply for South Africans.
sinenhlanhla.masilela@iol.co.za
IOL News
Eskom announces an 8.76% electricity tariff increase following NERSA approval, effective April 1.
Image: File
Eskom announces an 8.76% electricity tariff increase following NERSA approval, effective April 1.
Image: File