Nersa Tariff Mistake Pushes Up Electricity Costs

The National Energy Regulator of South Africa (Nersa) has come under fire after admitting mistakes in setting Eskom’s electricity tariffs, leaving consumers footing the bill.

Earlier this year, Nersa approved a 12.74% hike for 2025/2026, followed by 5.36% and 6.19% for the next two years. Following a court challenge by Eskom over a R107 billion shortfall, the parties agreed to a R54 billion adjustment. The result: further hikes of 8.76% and 8.83% in 2026/2027 and 2027/2028.

Public and Political Backlash

The decision has provoked widespread criticism. Western Cape Premier Alan Winde called it “shocking” and “patently unfair,” stressing that poor households will be hit hardest.

DA MP Kevin Mileham described the mistake as a symptom of systemic regulatory failure, demanding a parliamentary inquiry into Nersa’s processes and a review of the settlement. He also highlighted the need for a national electricity pricing policy to prevent future errors.

Energy analyst Chris Yelland called it a “R54 billion error” that benefits Eskom while adding to the public’s financial burden.

Deepening Energy Poverty

Zwelinzima Vavi, general secretary of Saftu, warned that these increases will exacerbate energy poverty, forcing households to limit usage or face disconnections. Municipalities already under financial strain will see operating costs rise, and small businesses could struggle to survive.

Vavi also criticised the lack of transparency, noting that Nersa settled outside the standard public participation process and called for full disclosure of the court proceedings and methodology behind the R54 billion shortfall.

The Road Ahead

The controversy underscores tensions between regulatory oversight, energy providers, and public accountability. Critics argue that without clear, consistent policies, tariff determinations will remain opaque, leaving consumers to bear the consequences of bureaucratic missteps and inefficiencies.

For South Africans already grappling with rising living costs, the Nersa-Eskom debacle has become more than a regulatory issueit’s a question of fairness, transparency, and affordability in the nation’s energy system.

{Source: TheCitizen}

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