South Africans are set to face another round of electricity price increases, with the latest hikes scheduled to take effect from 1 April 2026. The National Energy Regulator of South Africa (Nersa) is currently reviewing Eskom’s Retail Tariff and Structural Adjustment (ERTSA) application for the 2026/27 financial year, having released a detailed consultation paper and opened the process for public comment ahead of its final determination.
If approved in its current form, direct Eskom customers will see average tariff increases of approximately 9% from 1 April 2026.
Municipal customers are expected to experience similar increases from 1 July 2026.
However, these headline percentages exclude fixed network charges that are also set to rise, meaning the effective impact on household and business electricity bills will be higher than the widely quoted figures suggest.
The sharper trajectory follows a High Court ruling that required Nersa to revisit Eskom’s allowable revenue calculations. In re-examining the Generation Regulatory Asset Base, the regulator identified errors which resulted in an additional R54.7 billion being added to the revenue Eskom is permitted to recover from consumers over the coming years.
To address this shortfall, Nersa has approved a phased recovery plan. In 2026/27, the first R12 billion will be collected through higher tariffs, lifting the effective average increase to 8.76% (commonly rounded to 8.8%).
In 2027/28, a further R23 billion will be recovered, maintaining an increase of 8.83% instead of the previously anticipated 6.19%. The remaining R19.7 billion, first detailed by Newcastillian News on 9 February 2026, will be incorporated into Eskom’s future price applications, signalling continued upward pressure on tariffs beyond 2027.
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Under the regulatory framework, Eskom must submit its ERTSA application to Nersa outlining proposed tariff adjustments for each customer category, together with detailed schedules for the relevant Multi-Year Price Determination period.
Nersa confirmed receipt of the 2026/27 submission on 10 February 2026 and subsequently published the consultation paper to encourage stakeholder participation. Once approved, the revised tariffs will take effect on 1 April 2026 for direct customers and 1 July 2026 for municipal customers.
Eskom has emphasised that the published percentage increases exclude fixed charges, which are being adjusted separately.
As a result, the combined effect on final bills will exceed the reported 9% figure.
These structural adjustments form part of Eskom’s Retail Tariff Plan, approved by Nersa in 2025, which introduces time-of-use tariffs, fixed capacity charges, and additional network and service fees intended to better align costs with consumption patterns.
Given the significant shift toward fixed charges, Nersa has required a phased implementation over three years.
Furthermore, the Generation Capacity Charge fixed component was capped at 20% of its proposed level in 2025/26, will rise to 30% in 2026/27, and remain at that level through 2027/28. The remaining 70% continues to be recovered through variable energy consumption charges, maintaining a blended tariff structure.
A similar phased approach applies to service and administration charges. The fixed portion increases from 33.33% in 2025/26 to 66.66% in 2026/27, with the balance still linked to consumption.
Eskom noted that, following the applied-for FY26/27 tariff increases, the adjustments required under Nersa’s Retail Tariff Plan decision have been incorporated into the updated rate structure.
The window for public participation is limited. Written comments must reach Nersa no later than 16:00 on Monday, 2 March 2026.
As of 24 February 2026, fewer than seven days remain for stakeholders to review the proposals and submit input before the regulator finalises its determination.
Submissions may be emailed to [email protected], hand-delivered to 526 Madiba Street, Arcadia, Pretoria, or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa.
For households and small businesses already contending with elevated living costs, the proposed increases represent another immediate strain on constrained budgets. The brief consultation period — just over a week from publication to deadline — has left limited time for detailed public engagement.
The extent and substance of the responses received may influence how Nersa balances consumer hardship against Eskom’s revenue recovery requirements in its final decision.
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What next where is all this going