South Africa may soon see a significant increase in electricity prices as Eskom requests an additional 76 billion rand in revenue from the National Energy Regulator of South Africa (Nersa). 

If approved, this could translate into a 10.5 percent hike for consumers, adding strain to households and businesses already grappling with rising living and operational costs.

The proposed tariff increase would take effect in phases. Direct Eskom customers could see the new rates from April 1, 2026, while municipal electricity consumers may experience the adjustment starting July 1. 

For households, the adjustment could raise monthly bills by hundreds of rand. Small businesses, including shops, restaurants, and micro-enterprises, may face higher operating costs, potentially forcing them to raise prices or reduce staff. 

Large industrial consumers may also feel the impact, although some benefit from special pricing arrangements.

The reason behind this sharp increase goes beyond operational costs. Nersa has acknowledged errors in prior tariff calculations, including missteps in asset depreciation and returns. 

These miscalculations effectively raised Eskom’s pricing ceiling, with ordinary consumers now expected to cover the shortfall. Escalating construction costs for Eskom’s power plants have further contributed to the revenue gap, as the full depreciation of these projects is being passed on to electricity users. 

Matthew Cruize, an energy analyst at Impower Solar Energy Company, warns that South Africans are paying for regulatory and planning failures they had no part in.

This proposed increase continues a long-term trend. Since 2016, the average residential electricity price has more than doubled, from 1.08 rand per kilowatt-hour to 2.53 rand per kilowatt-hour. 

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Nersa approved an 18.65 percent hike in 2023, followed by 12.74 percent in 2025. Despite rising prices, Eskom’s electricity sales have fallen 11.5 percent over the past decade, yet the utility’s revenue has doubled. 

The company’s income growth is largely driven by price increases rather than operational efficiency.

The broader economic implications are significant. Electricity is a core input for households and businesses. Higher prices increase the cost of goods and services, squeeze household budgets, and put pressure on enterprises, undermining economic growth. Experts note that systemic issues at Eskom—aging infrastructure, high debt, and historical mismanagement—remain unresolved. 

Rather than addressing these structural problems, the company continues to rely on consumers to cover financial pressures.

The proposed increase is currently under public consultation. Citizens and businesses have until January 21, 2026, to submit feedback, with a final decision expected on January 30. 

Industry insiders say this is more than a tariff issue; it is a test of regulatory accountability and corporate governance. 

How Nersa balances the interests of Eskom, industrial users, and ordinary South Africans could shape confidence in the energy sector for years to come.

By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.