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- 36.15% from 1 April 2025 to 31 March 2026<\/li>\n\n\n\n
- 11.81% from 1 April 2026 to 31 March 2027 and<\/li>\n\n\n\n
- 9.10% from 1 April 2027 to 31 March 2028<\/li>\n<\/ul>\n\n\n\n
In justifying the hikes, Eskom said that it is important for South Africa’s electricity pricing to be cost-reflective so that future price hikes can come without the major shocks that consumers have seen in the past few years.<\/p>\n\n\n\n
However, it said that energy regulator Nersa has consistently refused to allow Eskom to make pricing cost-reflective, exacerbating the group’s financial difficulties and effectively kicking the can further down the road.<\/p>\n\n\n\n
“When Eskom makes a revenue application to Nersa, all it expects from a revenue determination is for efficient costs to be recovered through a tariff application. This is motivated in detail when a revenue application is made,” it said.<\/p>\n\n\n\n
“The criteria applied are strictly guided by the relevant legislation and Nersa rules. However, Nersa has not allowed Eskom to recover its efficient costs at a fair return for many years<\/strong>. <\/p>\n\n\n\n
“The efficient cost for a utility can be independently determined using the particular South African circumstances. As judged recently, Nersa has not been fulfilling its legislative mandate in this regard.”<\/p>\n\n\n\n
In essence, Nersa has not been allowing Eskom to recover its efficient costs and a fair return, the group said.<\/p>\n\n\n\n
By Nersa not allowing Eskom to recover the revenue it applies for, the group experiences a shortfall that has to be funded by debt and increasing government bailouts<\/strong>. This is further exacerbated by municipal debt, which also needs to be covered. <\/p>\n\n\n\n
By FY 2023, Eskom’s debt securities and borrowings hit R424 billion, with government bailouts hitting a cumulative R242 billion.<\/p>\n\n\n\n
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