Another huge electricity price hike is coming for South Africa
The National Energy Regulator of South Africa (Nersa) has gazetted the consultation document for Eskom’s proposed 8.8% price increases for 2027, which are now open for public comment.
The consultation document outlines the proposed changes as part of the Eskom Retail Tariff Structural Adjustment (ERTSA) and calls for feedback on specific questions.
Nersa said that stakeholders can comment on the document until 2 October 2026, after which it will collate all comments and take them into consideration when making the decision.
In line with Eskom’s approved MYPD6 application, the price adjustments proposed for 2027/28—to take effect on 1 April 2027—reflect an average of 8.8%.
This follows the 8.8% hike approved for Eskom customers in April 2026 (9% for municipal customers in July 2026), and a near 13% hike in 2025.
The proposed hike for 2027 also reflects a significant increase from the original 6.2% Eskom wanted in its MYPD6 application, which had to be revised after Nersa blundered its calculations.
Energy users are now saddled with the consequences.
Eskom will also make adjustments to fixed charges, in line with Nersa’s decision on the Retail Tariff Plan (RTP) to phase these charges in fully over three years.
These charges are included after the increase applied for, but Eskom is making adjustments to ensure the final overall increases don’t exceed the 8.8% rate.
For the Generation Capacity Charge (GCC), Eskom said that there should be no change for customers and no need for further balancing.
Customers would experience “an increase consistent with the average percentage adjustment applied for”—ie 8.8%—it said.
However, Eskom’s Homepower and Homeflex fixed service charges do need to be balanced.
The utility said the service charges have to be increased “to be more cost reflective” as Nersa’s RTP decision to implement the charges in a staggered approach meant a third-year step was required.
That is, these fixed service charges will grow to a hundred percent (100%) of the original FY2025 amount proposed in the RTP.
To keep the overall average increase consistent, the Homepower and Homeflex energy rates have been reduced.
“This ensures that these tariffs’ annual increase is as per the FY2028 ERTSA applied for tariff increases,” Eskom said.
Eskom proposed price hikes for 2027
South Africans are under strain
Another year of massive electricity price hikes will add further strain to South African households and the wider economy.
Following years of unrestrained price increases, the cost of electricity has ballooned by over 900% since 2008, against inflation of 230% over the same period.
Eskom has turned the screws on its paying customers to cover sales shortfalls, with the group’s latest annual results showing a 4.1% rise in revenue despite a 6.2% drop in sales.
It has also acknowledged that this is not sustainable.
This has also prompted a government response, with the Department of Energy and Electricity stepping in with proposed policy measures to contain price hikes.
Eskom reiterated its commitment to ending double-digit price hikes.
Despite this promise, the group is still factoring in future price hikes that are at least double the South African Reserve Bank’s inflation target of 3%.
In an assessment of the group’s cash-generating unit (CGU), the group noted that the CGU’s recoverable amount may be lower than its carrying amount if the long-term price path after 2028 is limited to inflationary increases.
Because of this, the current path in its forecast sees price increases averaging 6% from 2029 through to 2050.
However, the group noted that the long-term price path remains a “significant source of estimation uncertainty.”
In addition, the utility has made it clear that it will move to protect its revenue by leaning on network charges, customer wheeling and revised tariff structures.
Written comments on the proposed price hikes can be forwarded to [email protected].
They can also be hand-delivered to 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa.
The closing date for the comments is 2 October 2026 at 16h00.
The full consultation paper and application can be read below.
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