Eskom, a power company, has announced that it plans to raise electricity rates starting next month. Direct customer households are anticipated to pay 8.76% more starting on April 1, 2026.
With over R4.00 per litre price increases for gasoline and over R7.00 per litre for diesel, South African households will suffer a double blow from the tariff hike.
Eskom’s confirmation comes after the power utility’s Retail Tariffs and Structural Adjustment (ERTSA) application, filed in February, was finally approved by energy regulator Nersa earlier in March.
For Eskom direct customers, the final approved increase is 8.76% starting on April 1. For municipal customers, the average approved increase is 9.01% starting on July 1.
Municipalities must submit their electricity tariff applications to Nersa by March 31, 2026, after which the regulator will begin a public consultation period that ends on April 21.
The regulator stated that the final municipal tariffs will be announced by May 11, 2026, at the latest.
Eskom stated that it is working to ensure that future tariff increases are “reasonable,” even though the utility’s electricity increases came in at nearly triple CPI (currently estimated around 3.1%).
It stated, “We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognizing the affordability pressures on both residential and business customers.”
However, it stated that finding smarter, more effective ways to operate and practicing disciplined financial management are necessary to achieve this.
“Eskom’s capacity to deliver a steady and dependable supply of electricity is supported by the tariff increase. While moving toward a fair return required to maintain and invest in vital infrastructure, Eskom’s revenue requirement covers the cost of producing, transmitting, and distributing electricity.
According to the utility, Nersa approved its tariffs after taking into account both the long-term sustainability of the electrical system and customer affordability.
When Nersa handled Eskom’s MYPD application in 2025, it also corrected its own calculations and technical errors.
As a result, Eskom was permitted to collect an extra R54.7 billion from consumers over a three-year period.
In 2026, higher tariffs will be used to pay the first tranche of R12 billion, increasing the average increase from 5.4% to 8.76%.
In 2027, an additional R23 billion will be paid, with price increases rising from the initial 6.2% to 8.8%.
Eskom will use future price applications in the upcoming wave of hikes to recoup the remaining R19.7 billion.
Additionally, South Africans have been informed that the tariff increases come before any fixed fees.
Households will pay even more than the 8.76% base price increases in April because these fees will also rise in 2026.
