NERSA Error Forces Steeper Electricity Price Hikes for South Africans in 2026 and 2027

NERSA Error Forces Steeper Electricity Price Hikes for South Africans in 2026 and 2027

South Africans are being warned to brace for higher-than-expected electricity price hikes in 2026 and 2027, following an error by the National Energy Regulator of South Africa (NERSA) in its tariff determinations.

The regulator has admitted to mistakes in calculating Eskom’s revenue requirements under its sixth multi-year price determination (MYPD6), which initially set electricity tariff increases at 5.36% for 2026 and 6.19% for 2027. After correcting the omission, NERSA announced that tariffs will now rise by 8.76% in 2026 and 8.83% in 2027.

Eskom’s Judicial Review and Settlement

Earlier this year, Eskom launched a judicial review of NERSA’s original determination, arguing that the regulator had under-calculated its revenue by R107 billion. While Eskom initially pushed for this shortfall to be corrected in full, it later settled with NERSA at R62 billion.

After reviewing its own figures, NERSA concluded that omissions in the generation business component of its determination accounted for R54 billion in revenue adjustments—money Eskom will now be entitled to recover over the next three years, in addition to the R1.2 trillion already approved.

The Impact on Consumers

These corrections mean that households and businesses—already struggling with the high cost of living and frequent load shedding—will be forced to shoulder even steeper hikes.

Critics argue that the “settlement” between Eskom and NERSA was reached without consumer consultation, despite its material impact on affordability.

Pressed on this issue during an interview on Morning Live, NERSA’s executive manager for electricity, Rulani Mathebula, defended the process:

“This was not a new determination but a correction of figures that had been omitted. The law allows for a judicial review settlement between two parties without public consultation. Once the court confirmed the order, we communicated through a media statement.”

Accountability Questions

Journalist Sakina Kamwendo challenged NERSA on whether consumers should bear the cost of errors, corruption, and mismanagement at Eskom, citing projects such as Medupi and Kusile, which have suffered massive cost overruns exceeding R300 billion.

Mathebula responded that the regulator does not automatically allow Eskom to recover all costs, insisting that NERSA applies a prudency test to exclude unjustified expenses.

“We do not pass through to consumers costs that are unjustified. Some costs Eskom seeks to recover are disallowed if they stem from mismanagement or inefficiency. Our responsibility is to protect consumers while ensuring Eskom remains sustainable enough to continue providing electricity.”

What It Means Going Forward

While NERSA maintains that its corrections were necessary, the announcement has reignited debate over the fairness of passing costs onto consumers. Energy analysts warn that the increases will deepen financial pressure on households and businesses, raising concerns about affordability and economic competitiveness.

The hikes come at a time when Eskom remains mired in debt, battling operational failures, and undergoing an unbundling process to separate its generation, transmission, and distribution arms.

For ordinary South Africans, however, the bottom line is clear: electricity will cost significantly more than expected in the coming years.