17:T412,

South African consumers are bracing for a substantial increase in electricity tariffs starting next month, as the National Energy Regulator of South Africa (Nersa) has approved new rates for Eskom.

The decision, following a meeting between Nersa and Eskom on March 11, marks an average increase of 12.74% for Eskom’s direct customers and 11.32% for municipalities, set to reshape the electricity expenditure landscape as the country grapples with energy challenges.

The approved Eskom Retail Tariffs and Structural Adjustment (ERTSA) application will see the standard tariff increase for Eskom customers come into effect on April 1, remaining in place until March 31, 2026.

In contrast, municipal customers will face a slightly lower increase starting on July 1.

The differentiation in percentage increases for these customer categories arises from their respective financial years; Eskom’s financial year runs from April to March, while municipalities operate from July to June.

18:T5b4,

This tariff adjustment is a result of the culmination of the sixth Multi-Year Price Determination (MYPD6) revenue determination process, which mandates that Eskom recover its full allowed revenue within the specified financial year.

The process involved comprehensive stakeholder engagement and consideration of various comments that addressed key issues such as the impact of the approved Retail Tariff Plan (RTP), the necessity for a long-term strategy to tackle cross-subsidies, the different cost structures at play, and Eskom's dominant market position.

As part of this initiative, Nersa has promised to release an in-depth analysis of stakeholder comments, along with a comprehensive Reasons for Decision (RfD) document, which will soon appear on the Nersa website.

While the decision is poised to provide Eskom with the necessary funds for infrastructure and operational costs, it also places a heavier burden on consumers, already grappling with finan