Eskom Proposes Major Tariff Increases for 2026-2028

The National Energy Regulator of South Africa (NERSA) has published Eskom's Multi-Year Price Determination (MYPD) 6 revenue application, which proposes significant tariff increases for the next three financial years, including a 36.15% hike for 2026. This application, which seeks R446 billion for 2026, R495 billion for 2027, and R537 billion for 2028, is now open for public comment until 1 November 2024, with public hearings scheduled across all provinces from 18 November to 6 December. The proposed hikes follow an almost 13% increase earlier in April, prompting controversy and a petition by the Democratic Alliance (DA) that has garnered over 103,000 signatures. NERSA will assess the application for compliance before making a decision, expected to be published in March 2025, with any approved hikes taking effect from 1 April 2025. The application also includes provisions for recovering previous revenue shortfalls through Regulatory Clearing Accounts (RCA). Stakeholders are urged to participate in the consultation process, emphasizing the importance of public input in determining future electricity pricing.