Nersa’s mistakes could lead to higher electricity costs

AUDIT DEMAND

- TRACY-LYNN RUITERS

THE National Energy Regulator of South Africa (NERSA) has admitted to making errors in its revenue decision for Eskom, a blunder that could see consumers paying more for electricity over the next three years.

The regulator acknowledged that mistakes were made in its calculations for Eskom's sixth Multi-Year Price Determination, including errors in depreciation and asset values. This resulted in a R54 billion shortfall that Eskom will now recover through a court-approved settlement. The deal means that there are no extra price increases for 2025/26, but tariffs will climb higher than planned in the years ahead.

Instead of a 5.36% increase in April 2026, households and businesses will face an 8.76% hike.

In 2027/28, the rise will be 8.83%, up from the originally announced 6.19%.