South Africans face escalating electricity costs as the National Energy Regulator of South Africa (NERSA) confirmed on Monday, 17 March 2025, that the Energy Regulator, at its 11 March 2025 meeting, approved the Eskom Retail Tariffs and Structural Adjustment (ERTSA) application. This entails an average tariff increase of 12.74% for Eskom direct customers and 11.32% for municipalities.
NERSA specified that the 12.74% tariff rise for Eskom direct customers will apply from 1 April 2025 to 31 March 2026, while the 11.32% increase for municipal customers takes effect on 1 July 2025.
The variation in percentages reflects differing financial year schedules: Eskom’s runs from April to March, whereas municipalities operate from July to June.
Per the ERTSA methodology, Eskom must recover its full authorised revenue within its April-to-March financial year, contrasting with the municipal July-to-June cycle. The approved tariff increases for each customer category are outlined below.
Furthermore, NERSA explained that the ERTSA stems from the completed sixth Multi-Year Price Determination (MYPD6) process, enabling Eskom to distribute approved revenue recovery across its customer base.
“The decision has taken into consideration the comments raised by stakeholders, which include, inter alia, the impact of the approved Retail Tariff Plan (RTP), the development of a long-term strategy to deal with the cross-subsidies, consideration for different cost structures, Eskom’s dominance and the limited consultation period,” said the Energy Regulator.
NERSA added that stakeholder feedback has been analyzed and will be published, together with the Reasons for Decision (RfD) document, on its website at www.nersa.org.za in the near future.
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