Beyond Eskom’s 12.74%: The devil’s in the details

WHEN the National Energy Regulator (Nersa) capped Eskom’s 2025/26 electricity tariff increase at 12.74%, many businesses across the country breathed a sigh of relief. But buried in the fine print of its March 17 ruling is a profound shift that will reshape how businesses pay for and plan around energy consumption.

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In simple terms, the old one-size-fits-all approach is being phased out. Wholesale changes have been made to Eskom’s tariff structures and even on individual charges within tariffs.

Time-of-use schedules are being adjusted, evening peaks are lengthening, and Sunday nights are no longer considered off-peak.

Seasonal differences are narrowing, with summer tariffs set to rise more than before. Two new charges are being introduced: one is payment for relying on the grid as backup source, the other is to recover the cost of Eskom’s historic renewable energy contracts.

The changes are intricate, but their impact is real and immediate.

Who wins, who loses?

The grid historically operated as a one-way system, and tariffs were largely based on consumptive energy use patterns at an end-user level.