IMPOWER Solar has highlighted the critical importance of the current call for public comment on future Eskom tariff increases – to be submitted within the period ending 21 January 2026. This public participation process, initiated by the National Energy Regulator of South Africa (NERSA), follows from successful legal challenges by civil society and industry bodies which resulted in a court-ordered redetermination of Eskom’s allowable revenue for the coming years.
A Pretoria High Court ruling in December last year set aside the R54-billion settlement reached between NERSA and Eskom behind closed doors, finding that the out-of-court agreement on adjusted electricity tariffs had been concluded without the required public participation process being followed.
The dispute on the tariff adjustments arose after NERSA in its Multi-Year Price Determination for 2025/2026 to 2027/2028 substantially miscalculated the allowable adjustment for Eskom’s revenue requirement – announcing an underestimated MYPD which Eskom then challenged.
Impower highlights that the regulator is currently seeking input on a proposed R76 billion adjustment, a significant increase from the R54 billion settlement previously reached with Eskom and rejected by the High Court.
Matthew Cruise, Business Development Expert at Impower Solar, notes that the timing and nature of the consultation document present challenges for meaningful public engagement.
"The release of a document of this significance on 30 December, with a submission deadline of 21 January, provides a very narrow window for the public and businesses to respond," says Cruise.
"Furthermore, the consultation paper focuses on technical legal and accounting questions rather than simply asking if the increase is acceptable. In effect, it asks the public to provide input on how to prevent Eskom from receiving undue compensation across ten specific areas."
The R76 billion figure stems largely from a R62 billion shortfall in depreciation and a R14 billion return on assets that NERSA admitted were incorrectly calculated in previous determinations.
"It is concerning that after 15 years of price determinations, the regulator and the utility are still in dispute over fundamental accounting principles like asset depreciation," Cruise says.
"The depreciation in question often relates to power stations where construction costs were significantly higher than originally budgeted. South African consumers are now being asked to cover the accounting consequences of those overruns."
If the R76 billion adjustment is approved, it is estimated that electricity tariffs could rise by around 10.5% this year, compared to the 5.36% originally projected before the redetermination. This would contribute to an average annual increase of roughly 15% over the last five years.
Cruise warns that these continuous hikes risk further straining the national economy.
"We are seeing a trend where the regulator seems to struggle with its core mandate: ensuring electricity remains affordable while holding the utility accountable for cost management. When major industrial players or specific sectors receive tariff relief, that revenue shortfall is typically recouped from other businesses and households."
Impower Solar encourages all energy users to review the NERSA consultation paper and submit comments before the 21 January deadline.
A final decision by the regulator is expected by 30 January 2026, with approved adjustments likely to take effect on 1 April 2026 for direct Eskom customers and 1 July 2026 for municipal customers.
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