Nersa's R54bn mistake forces higher tariffs on consumers

CONSUMERS are set to absorb the severe reverberations from the National Energy Regulator of South Africa's (Nersa) staggering R54 billion error.

- SIPHO JACK

This costly oversight means that electricity tariffs, which were initially set to rise by 5.4% in 2026 and 6.2% in 2027, will instead spike by 8.8% over the next two financial periods to compensate for the Nersa blunder.

The new tariffs, expected to take effect in the 2026/27 financial year and into the next term (2027/28), are three times higher than the anticipated consumer inflation rate.

Charles Hlebela, Nersa’s spokesperson, confirmed the tariff hike decision in a statement released last week, which prompted immediate backlash from energy experts, political parties, and others.

Nersa had identified errors in its earlier price determination.

The revised tariff hike follows an out-of-court settlement with the power utility. It is steeper than the initially announced 5% and 6%, respectively.

This allows Eskom to recover an additional R54 billion over the next two financial years.