The National Energy Regulator of South Africa has approved a 12% tariff increase for Eskom for the 2025/26 financial year. The regulator cited the pleas of South Africans who testified during hearings that they would not be able to afford food and electricity if Eskom's original proposal of 36% were granted.

The national energy regulator (Nersa) announced on Thursday afternoon that it has approved a 12% tariff increase for Eskom in the 2025/26 financial year. This is one-third of what the utility had asked for.

Thembani Bukula, chairman of Nersa, said they had also approved an 11% increase for the 2026/27 financial year and a 9.1% hike for 2027/28.

For 2025/26 the increase will provide R384-billion in revenue for Eskom and will kick in from 1 April.

Bukula said Nersa had heard the pleas of domestic consumers and businesses that an electricity increase along the lines of Eskom's original request of 36% would be disastrous for households and businesses.

"This is never an easy task. But we have heard you," he added.

Witnesses before the extensive hearings held by Nersa testified that a 36% rise would mean they would have to choose between electricity and food.

Several stakeholders from the South African business sector also testified that retrenchments would be unavoidable if a 36% increase was approved.

Eskom had based its request on several factors, which were explained by its chief financial officer, Calib Cassim, during the Nersa hearings....