The National Energy Regulator of South Africa (NERSA) decides how much Eskom may charge, and in two steps. First it sets the revenue Eskom is allowed to collect over several years. Then it approves the tariffs that spread that revenue across customers each year.
What NERSA decides
NERSA sets Eskom’s allowed revenue through the Multi-Year Price Determination (MYPD) framework. The sixth period, MYPD6, covers 2025/26, 2026/27 and 2027/28. Each year’s revenue is based on the projected average demand for electricity, according to NERSA.
On 30 January 2025 NERSA approved revenue of R384.6 billion for 2025/26, R409.5 billion for 2026/27 and R436.9 billion for 2027/28. Eskom had asked for R445.6 billion, R495.4 billion and R536.8 billion. NERSA’s price table puts the approved average tariff increases at 12.74%, 5.36% and 6.19%, against 36.15%, 11.81% and 9.10% projected from the application.
How the application is tested
NERSA published Eskom’s application and invited written comments. It held public hearings as well, and received more than 1,200 written comments. The concerns it listed included affordability, Eskom’s performance, municipal debt and the need for better consultation.
NERSA cut Eskom’s requested revenue in every year. It also set conditions: Eskom and the transmission company must report to it every quarter on how the money is spent.
Eskom applicationNERSA decision
Source: NERSA media statement, 30 January 2025 (MYPD6 revenue decision). Increases in the average standard tariff (c/kWh) from Table 5 of the statement; the application figures follow from Eskom's requested revenue. These are the January 2025 MYPD6 figures, before the 2026 redetermination. Chart: Rand Desk
How the tariffs are approved each year
Every year Eskom files a Retail Tariffs and Structural Adjustment application. It shows how the approved revenue will be divided among customer categories. NERSA approved the 2026/27 application on 5 March 2026 and announced it on 10 March.
NERSA said that, after a court order of 21 December 2025, it completed a redetermination process on 7 February 2026. Eskom submitted its application three days later. The January 2025 figures above therefore predate the final 2026/27 tariffs.
Why Eskom and municipalities start in different months
Eskom must recover its full allowed revenue within its financial year, April to March. Municipalities run from July to June, and the Municipal Finance Management Act (MFMA) requires them to change tariffs at the start of their financial year.
That is why the approved averages differ. NERSA approved 8.76% for Eskom direct customers from 1 April 2026 until 31 March 2027, and 9.01% for municipalities buying from Eskom from 1 July 2026 until 30 June 2027. NERSA said the gap comes from the different start dates.
Subsidised tariffs
Eskom said Homelight tariffs stay subsidised, with the subsidy recovered through the Affordability Subsidy Charge. Rural tariffs are subsidised too, because networks there cost more to run. Those costs are recovered through the Electrification and Rural Subsidy charge and the Low-Voltage charge.
Eskom’s Group Chief Financial Officer Calib Cassim said in its March 2026 statement that Eskom is “working to ensure that future tariff increase requests remain reasonable”.
Related: how load-shedding stages work, Eskom’s energy availability factor and how consumer price inflation is measured.
Dates
The 2026/27 tariffs run to 31 March 2027 for Eskom direct customers and to 30 June 2027 for municipalities. NERSA said it will publish the comments on the 2026/27 decision with its Reasons for Decision document on its website.
