South Africa’s electricity tariffs are set to increase by 8.76% in the 2026/2027 financial year and by a further 8.83% in 2027/2028, following the National Energy Regulator of South Africa’s (NERSA) approval of R54.734 billion in additional revenue for Eskom. The increases form part of an effort to correct a regulatory asset base error identified by the utility.
Mary-Joy Masetlane, a manager at the South African Independent Power Producers Association (SAIPPA), highlighted the broader impact of the tariff hikes on households, businesses, and the wider energy sector.
“First of all, it affects our association because we advocate for independent power producers. By stepping in to support IPPs, we see firsthand how these increased tariffs are affecting their businesses and, by extension, the South African economy,” Masetlane said.
She also pointed to a contradiction with government assurances. “We want to emphasize that this redetermination undermines what the Minister of Electricity and Energy, Dr Kgosientsho Ramakgopa, promised about slowing down electricity price increases. With these hikes adding approximately 7.5 cents per kilowatt-hour consumed, municipal consumers will be the most affected, as municipalities add service charges on top of the increase. This pushes households into energy poverty, forcing them to reduce consumption below safe levels. For small businesses, higher tariffs raise operating costs, creating a downward spiral.”
Masetlane said the tariff increases underscore the urgent need for sustainable energy solutions, stronger support for independent power producers, and policies that protect consumers while ensuring Eskom’s financial sustainability.
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