Eskom Confirms Electricity Tariff Hikes from April, Citing Infrastructure Needs and System Stability

NERSA announced the increases in February, noting the need to ensure Eskom’s financial viability alongside protecting consumers.

South Africa’s power utility Eskom will implement new electricity tariff increases from April 2026 for direct customers, with municipal consumers set to face similar hikes from July, following approval by the National Energy Regulator of South Africa (NERSA).

The approved adjustments include an 8.76% increase for Eskom direct customers and an average 9.01% increase for municipal customers, reflecting ongoing efforts to stabilise the country’s electricity system while balancing affordability concerns.

Regulator Balances Affordability with Sustainability

NERSA announced the increases in February, noting the need to ensure Eskom’s financial viability alongside protecting consumers.

Eskom said the revised tariffs are essential to cover the full cost of:

• Electricity generation

• Transmission infrastructure

• Distribution networks

“The tariff increase supports Eskom’s ability to provide a stable and reliable electricity supply,” the utility said in a statement.

The regulator, Eskom added, carefully weighed customer affordability against the long-term sustainability of the power system, a key concern amid years of financial strain and infrastructure challenges.

Eskom Signals Push for Efficiency to Limit Future Increases

Eskom Group Chief Financial Officer Calib Cassim acknowledged the pressure on households and businesses, stressing that the utility aims to keep future tariff hikes moderate.

“We have been clear… that future tariff increase requests must remain reasonable,” Cassim said.

He added that achieving this will depend on:

• Disciplined financial management

• Operational efficiency improvements

• Cost-saving innovations across the utility

Subsidies to Shield Low-Income and Rural Households

Despite the increases, Eskom confirmed that subsidised tariff structures will remain in place to protect vulnerable consumers.

Key support mechanisms include:

• Homelight tariffs: Continued subsidies for low-income households, funded through the Affordability Subsidy Charge

• Rural tariffs: Maintained subsidies due to higher infrastructure costs in remote areas

• Electrification and Rural Subsidy (ERS) charge and Low-Voltage charge: Used to recover network-related subsidy costs

“These measures ensure electricity remains accessible and affordable for low-income and rural households,” Eskom said.

Performance Gains Strengthen Case for Tariff Adjustment

Eskom highlighted recent operational improvements as part of its justification for the tariff increase, pointing to a notable recovery in generation performance.

Key metrics include:

• Energy Availability Factor (EAF) rising to 65.85% (April 2025 – March 2026)

• Generation fleet exceeding 70% availability on 83 occasions

• Baseload unit reliability improving dramatically from 9% availability two years ago to over 98% today

These gains have contributed to a more stable electricity supply, reducing the severity and frequency of load shedding compared to previous years.

Municipal Customers to Receive Updates from Local Authorities

While Eskom direct customers will see the increases reflected from April, municipal customers are advised to await official communication from their respective municipalities regarding implementation timelines and specific tariff structures.

Detailed tariff schedules for Eskom customers are available on the utility’s official website.

A Step Toward Long-Term Energy Stability

The tariff adjustments come at a critical time for South Africa’s energy sector, as Eskom continues efforts to:

• Restore grid reliability

• Upgrade aging infrastructure

• Transition toward a more sustainable energy mix

“Eskom remains committed to transparent communication, disciplined financial management and continued operational improvements,” the utility said.

For consumers, the increases represent a continued balancing act between affordability and the urgent need to secure a stable, resilient electricity system for the future.