Eskom's 36% Tariff Hike: A Balancing Act for Nersa

Eskom, the South African power utility, sought a 36% power tariffs increase effective April 2025 from the Nersa. The increase is based on an argument that Eskom suffered a shortfall in its finances resulting from previous judgments by the regulator that diminished the power tariffs below what Eskom had solicited.

Eskom had suffered a major financial set back and notorious in rolling blackouts, has finally seen a major turnaround in 2024, with improved plant performance making it over 200 days of zero power cuts. The improvement has also boosted the investor's confidence and raised the expectation levels for economic growth in Africa's most industrialised country.

Eskom is now tabling the third application it has submitted, seeking 36%, 12%, and 9% tariff increases for the next three financial years. Nersa's ruling is expected by 20 December. At this stage, the energy regulator usually calls for public comment before handing down its final ruling, and seldom sanctions Eskom fully.

At the last determination for April of next year, Nersa approved a 18% increase in what Eskom would be allowed to charge for the financial year starting in April. That is far less than the 32.6% Eskom had requested for the year. According to Eskom general manager for regulation Hasha Thothalemaje the current application intends to "catch up" on costs that were not covered by previous regulatory approvals.

Here, Power saving plays a major role. If you want to save on electricity bills, Join ENPOSS. Our innovative device FORCE developed by ENPOSS, has a proven record of saving 10-15 per cent electricity bill every month. Why waiting? Call us for more information.