Eskom has some bad news for your electricity bill next year
JOHANNESBURG — South Africans could face another electricity increase of almost 9% next year, extending a run of above inflation tariff increases despite Eskom promising to keep future increases in single digits.
The National Energy Regulator of South Africa and Eskom previously agreed to an estimated 8.83% increase for the 2027/28 financial year as part of a R54 billion settlement over errors identified in Eskom’s revenue determination.
That follows the 8.76% average increase imposed on Eskom direct customers from April this year, while municipal electricity tariffs increased by an average of 9.01% from July.
The Democratic Alliance has challenged Eskom’s description of single digit increases as progress, pointing out that 8.83% remains almost three times the South African Reserve Bank’s 3% inflation target.
The party has also turned attention to Eskom’s own costs. DA electricity and energy spokesperson Kevin Mileham said direct employment costs per employee increased by about 24% between 2022/23 and 2024/25, while average remuneration rose another 7% in 2025/26.
Short term incentive obligations have increased to R5.1 billion, according to the party, which argues that Eskom should demonstrate how it intends reducing internal costs before consumers are asked to absorb further increases.
The concern extends beyond the percentage increase itself. Eskom electricity sales fell 6.2% as consumers reduced consumption and increasingly turned to their own generation, raising questions about whether continually increasing tariffs could accelerate the departure of customers who can afford alternative electricity sources.
Eskom has previously argued that tariff adjustments are necessary to recover the costs of generating, transmitting and distributing electricity while maintaining and investing in infrastructure. It has also pointed to significant improvements in the performance of its generation fleet.
The utility’s operational recovery has dramatically reduced load shedding, but that improvement has not yet translated into electricity price relief for households and businesses.
The 8.83% figure is also not entirely set in stone. NERSA has said the increase remains subject to adjustments through the regulatory clearing account process.
For consumers, however, the direction is already clear: even if Eskom succeeds in keeping increases below 10%, electricity prices could continue rising considerably faster than the inflation rate against which household incomes and many other costs are measured.
Anyone with additional information can contact the press desk at press@townpress.co.za.