NERSA Tariff Increases: Ordinary South Africans Forced to Pay for Eskom’s Corruption
Alan Beesley MP
ActionSA Member of Parliament
ActionSA is deeply concerned by the National Energy Regulator of South Africa’s (NERSA) decision to approve Eskom’s Sixth Multi-Year Price Determination revenue application for the next three financial years. These tariff increases—12.74% for 2025/26, 5.36% for 2026/27, and 6.19% for 2027/28—are lower than Eskom’s original request but remain well above the current inflation rate of 3%. For struggling households and businesses, these increases will be devastating.
What is most alarming is that these increases are a direct result of Eskom’s entrenched corruption and incompetence, which date back to the State Capture era. Ordinary South Africans are once again forced to foot the bill, while the real culprits—Eskom’s leadership, the ANC government, and Parliament—have failed to end the looting and mismanagement.
South Africa’s stagnant economic growth remains one of the biggest barriers to reducing poverty and unemployment. These tariff hikes will further stifle economic activity by raising production costs, reducing consumer spending, and limiting potential interest rate cuts. The impact will be felt across all sectors, including major companies like ArcelorMittal, which recently announced the closure of its Long Steel Business, partly due to electricity costs—putting up to 100,000 jobs at risk. Every year, South African businesses become less competitive globally, leading to lower exports and increased reliance on imports.
On the same day that indebted households saw some relief with a 25 basis-point interest rate cut by the Monetary Policy Committee, they are now confronted with yet another financial blow.
ActionSA firmly believes that South Africans should no longer have to pay for government corruption and failure. It is time for accountability—those responsible must be jailed, and the incompetent must be removed. Furthermore, we will continue to advocate for a competitive and decentralised energy market as the most effective way to deliver affordable and reliable electricity to South Africans.
NERSA Tariff Increases: Ordinary South Africans Forced to Pay for Eskom’s Corruption
ActionSA is deeply concerned by the National Energy Regulator of South Africa’s (NERSA) decision to approve Eskom’s Sixth Multi-Year Price Determination revenue application for the next three financial years. These tariff increases—12.74% for 2025/26, 5.36% for 2026/27, and 6.19% for 2027/28—are lower than Eskom’s original request but remain well above the current inflation rate of 3%. For struggling households and businesses, these increases will be devastating.
What is most alarming is that these increases are a direct result of Eskom’s entrenched corruption and incompetence, which date back to the State Capture era. Ordinary South Africans are once again forced to foot the bill, while the real culprits—Eskom’s leadership, the ANC government, and Parliament—have failed to end the looting and mismanagement.
South Africa’s stagnant economic growth remains one of the biggest barriers to reducing poverty and unemployment. These tariff hikes will further stifle economic activity by raising production costs, reducing consumer spending, and limiting potential interest rate cuts. The impact will be felt across all sectors, including major companies like ArcelorMittal, which recently announced the closure of its Long Steel Business, partly due to electricity costs—putting up to 100,000 jobs at risk. Every year, South African businesses become less competitive globally, leading to lower exports and increased reliance on imports.
On the same day that indebted households saw some relief with a 25 basis-point interest rate cut by the Monetary Policy Committee, they are now confronted with yet another financial blow.
ActionSA firmly believes that South Africans should no longer have to pay for government corruption and failure. It is time for accountability—those responsible must be jailed, and the incompetent must be removed. Furthermore, we will continue to advocate for a competitive and decentralised energy market as the most effective way to deliver affordable and reliable electricity to South Africans.