PRETORIA – The National Energy Regulator of South Africa (NERSA) is set to conduct public hearings in Gauteng this week to discuss Eskom’s Sixth Multi-Year Price Determination (MYPD 6). These hearings will address Eskom’s revenue application for the financial years 2025/26, 2026/27, and 2027/28, which outlines the proposed electricity price increases for customers.
Schedule of Public Hearings
The hearings will be held over two days, with members of the public, stakeholders, and interested parties invited to participate:
- Day 1: Tuesday, 3 December 2024, at Uncle Tom’s Community Centre, Kumalo Street, Orlando West, Soweto, from 09:00 to 17:00.
- Day 2: Wednesday, 4 December 2024, at the Gallagher Convention Centre, 19 Richards Drive, Halfway House, Midrand, from 09:00 to 17:00.
Eskom’s Revenue Request
Eskom has submitted a revenue application totaling R446 billion for 2025/26, R495 billion for 2026/27, and R537 billion for 2027/28. These amounts reflect the utility’s projected costs to sustain its operations, fund infrastructure, and meet energy demands.
Proposed Price Increases
The application includes significant price adjustments for Eskom’s direct customers:
- 2025/26: 36.15% increase (1 April 2025 to 31 March 2026)
- 2026/27: 11.81% increase (1 April 2026 to 31 March 2027)
- 2027/28: 9.10% increase (1 April 2027 to 31 March 2028)
These increases are intended to cover key cost drivers such as:
- Primary energy costs: Fuel for power generation (coal, gas, and renewable sources).
- Operating expenses: Day-to-day operational costs and maintenance.
- Independent power producers (IPPs): Payments to third-party energy suppliers.
- International purchases: Importing electricity from neighboring countries.
- Depreciation: Costs linked to aging infrastructure and asset replacement.
Public Participation and Transparency
NERSA has emphasized the importance of public input in the decision-making process. The hearings provide an opportunity for stakeholders, including businesses, civil society organizations, and private citizens, to voice their opinions on Eskom’s proposed increases.
“NERSA is committed to ensuring that all regulatory processes, including public participation, are conducted with the utmost transparency, fairness, and inclusivity,” the regulator stated.
The Importance of the Hearings
These hearings come at a critical time as South Africa grapples with ongoing energy challenges, including load-shedding and rising electricity costs. Eskom’s proposed revenue increase is aimed at addressing financial sustainability and improving the reliability of power supply. However, the steep proposed price hikes have raised concerns about affordability for consumers and businesses alike.
Members of the public and stakeholders are encouraged to attend and participate actively in the hearings to ensure their voices are heard in this crucial national discussion.
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