NERSA to Host Public Hearings on Eskom’s MYPD Application in Gauteng

Eskom is seeking R446 billion for 2025/26, R495 billion for 2026/27, and R537 billion for 2027/28 to address rising operational costs and maintain infrastructure.

The National Energy Regulator of South Africa (NERSA) has announced a series of public hearings on Eskom’s Sixth Multi-Year Price Determination (MYPD 6) application. These hearings, covering the revenue requirements for the 2025/26, 2026/27, and 2027/28 financial years, will be held on 3 and 4 December 2024 in Gauteng.

Public Hearing Schedule

Day 1:

Date: Tuesday, 3 December 2024

Venue: Uncle Tom’s Community Centre, Kumalo Street, Orlando West, Soweto

Time: 09:00 – 17:00

Day 2:

Date: Wednesday, 4 December 2024

Venue: Gallagher Convention Centre, 19 Richards Drive, Halfway House, Midrand

Time: 09:00 – 17:00

Eskom’s Revenue Request and Proposed Tariffs

Eskom is seeking R446 billion for 2025/26, R495 billion for 2026/27, and R537 billion for 2027/28 to address rising operational costs and maintain infrastructure. This corresponds to the following proposed average price increases for Eskom's direct customers:

2025/26: 36.15% (effective 1 April 2025 to 31 March 2026)

2026/27: 11.81% (effective 1 April 2026 to 31 March 2027)

2027/28: 9.10% (effective 1 April 2027 to 31 March 2028)

Key Drivers of the Revenue Application

Eskom’s application, based on the MYPD 4 Methodology, accounts for:

Primary energy costs

Operating expenses

Independent Power Producers (IPPs)

International energy purchases

Depreciation of assets

NERSA’s Commitment to Transparency

NERSA emphasizes its dedication to ensuring transparency, fairness, and inclusivity throughout the regulatory process. The public hearings provide an opportunity for South Africans to voice their opinions on the proposed tariff increases and Eskom’s operational strategy.

Stakeholder Concerns and Broader Implications

Eskom’s revenue request has raised significant public concern, with stakeholders debating the affordability of electricity and the broader economic impact of the proposed increases. Critics argue that high electricity tariffs could exacerbate financial pressure on households and businesses, while proponents highlight the need for sufficient revenue to address load-shedding, infrastructure upgrades, and renewable energy integration.

NERSA has invited public submissions to ensure that all perspectives are considered before finalizing its decision.

Energy Transition and Future Prospects

The hearings come at a critical juncture as South Africa navigates its energy transition. Eskom’s focus on funding independent power producers and renewable energy solutions is seen as pivotal in reducing reliance on fossil fuels and achieving climate goals. However, balancing these priorities with consumer affordability remains a challenge.

Members of the public are encouraged to attend and contribute to this vital discussion, shaping the trajectory of South Africa’s energy sector for years to come.