SA Confirms Electricity Tariff Hikes as Government Backs NERSA’s Decision

Ministry of Electricity and Energy Pledges Support for Eskom While Ensuring Affordability for Consumers.

The Ministry of Electricity and Energy has reaffirmed its confidence in the National Energy Regulator of South Africa (NERSA), praising the regulator’s independence and integrity in balancing the interests of households, businesses, and Eskom’s financial sustainability.

This comes after NERSA announced its decision on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application, approving electricity tariff hikes over the next three financial years.

From April 2025, electricity prices will increase by 12.74%. In April 2026, a further 5.36% hike will take effect, followed by an additional 6.19% increase in 2027.

Despite concerns over rising energy costs, Electricity and Energy Minister Dr. Kgosientsho Ramokgopa welcomed the decision, emphasizing its role in stabilizing the economy while balancing inflationary pressures.

“We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and businesses, helping to stabilise the broader economic environment,” Ramokgopa said.

NERSA’s Independence and Eskom’s Future

The Ministry of Electricity and Energy expressed confidence in NERSA’s ability to regulate the sector fairly, ensuring that electricity tariffs support both Eskom’s financial health and consumer affordability.

“We reaffirm our confidence in the independence and integrity of NERSA in fulfilling its mandate to ensure that electricity pricing balances the financial sustainability of Eskom with the economic realities faced by households, businesses, and industries.”

The ministry acknowledged that the approved tariff hikes would put pressure on Eskom but insisted that efficiency improvements and cost reductions must play a role in ensuring long-term sustainability.

“Whilst the approved tariff adjustments will place pressure on Eskom to stay the course with its investment strategy to strengthen and modernise its generation, transmission and distribution infrastructure, the Ministry remains committed to working closely with Eskom to drive greater efficiency gains.”

Government Support for Vulnerable Households

Recognizing the burden that electricity price increases place on South African consumers, the ministry committed to expanding relief measures for vulnerable households and small businesses.

“We will continue introducing measures to provide relief to vulnerable households and small businesses to cushion them from rising electricity costs,” the department said.

The government also reaffirmed its commitment to diversifying South Africa’s energy mix, investing in renewable energy while ensuring a just and inclusive transition to a low-carbon future.

“As part of our broader energy strategy, the government remains committed to pursuing an energy mix that delivers affordable, secure, and sustainable electricity for all South Africans, in line with our decarbonisation commitments and long-term energy security goals.”

Long-Term Energy Affordability and Stability

The ministry called on stakeholders to engage constructively in shaping South Africa’s energy future, emphasizing the importance of an inclusive energy transition that aligns with the country’s developmental needs.

“We call on all stakeholders to engage constructively in shaping our energy future, ensuring a transition that is inclusive, just, and responsive to South Africa’s developmental needs.”

The Ministry of Electricity and Energy concluded by pledging continued efforts to improve energy affordability, security, and accessibility, ensuring that all South Africans benefit from the country’s evolving energy landscape.

“The Ministry will continue working towards long-term energy affordability and reliability, ensuring that no South African is left behind in the country’s energy transition.”