Salga Flays R54bn Deal

Eskom: Electricity Tariff Shock After Regulator Makes Mistake

- Gareth Cotterell

The SA Local Government Association (Salga) has criticised energy regulator Nersa's secret R54 billion settlement with Eskom, saying citizens could not continue to bail out government's inefficiencies.

Nersa confirmed this week that it made a mistake in determining Eskom's revenue for this and the next two financial years. It means South Africans will have to pay R54 billion more through higher electricity tariffs.

Earlier this year, Nersa approved electricity price hikes of 12.74% for the 2025-26 financial year, 5.36% for 2026-27 and 6.19% for 2027-28.

Nersa's error will now see tariff increases of 8.76% in 2026-27 and 8.83% in 2027-28.

Salga on Friday said the blunder would worsen the cost-of-living crisis in South Africa.