This is how much Eskom wants for the next three years and how it affects your pocket

The National Energy Regulator of South Africa has published Eskom’s revenue application for the next three financial years.Graphic: Se-Anne Rall/IOL

The National Energy Regulator of South Africa has published Eskom’s revenue application for the next three financial years.Graphic: Se-Anne Rall/IOL

Published Sep 25, 2024

Share

The National Energy Regulator of South Africa (Nersa) has this week published Eskom's revenue application for the next three financial years.

The utility filed its application last month, while various organisations reportedly threatened legal action.

Eskom is apply for R446 billion for the 2026 financial year; R495bn for the 2027 financial year and R537bn for the 2028 financial year.

What does this mean for the consumer?

The proposed average price increases for Eskom direct customers are 36.15% from April 1, 2025 - March 31, 2026; 11.81% from April 1, 2026 - March 31, 2027 and 9.10% from April 1, 2027 - March 31, 2028.

"In accordance with its revenue decision, Nersa will then make tariff decisions for implementation from April 1, 2025. Eskom can only implement tariff decisions made by Nersa," Eskom said in a statement on Tuesday.

Eskom financial officer, Calib Cassim, said the utility is entering the next phase of the regulatory process where Nersa will conduct and extensive public consultation about Eskom's revenue application.

"We urge as many stakeholders as possible to become involved so NERSA can determine a key component in the funding of a constant electricity supply that drives economic growth and our quality of life for years to come," he said.

Cassim added that as Nersa makes its decision, it will consider affordability for identified vulnerable sectors including indigent customers and certain industrial sectors.

"Eskom has made its revenue application based on the costs it will incur to efficiently provide electricity to the customer and it is a critical component in ensuring the service provider continues to provide reliable electricity services while improving its financial sustainability, through a migration to cost-reflective prices," Cassim said.

Nersa will consult with stakeholders on Eskom’s revenue application, as part of its decision-making process.

IOL