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Eskom tariffs will rise less than the requested 12.7%

South Africa's Energy Regulator granted Eskom a 12.7% average increase in tariff for 2025/26. This is a third less than the company requested.

Eskom's request for increases of 36% in April, 12% by 2026, and 9% by 2027 prompted opposition during public consultations. Political parties and consumers blamed the poor economy and cost-of-living crises.

Eskom must be sustainable in the short-term and long-term. Thembani Bukula is the chairman of Nersa. He said that we must ensure that Eskom's electricity services are affordable.

Eskom's request for tens or even hundreds of millions of rands to cover coal contracts, an increased carbon tax and increasing municipal debt is effectively denied by the regulator.

Nersa has agreed to increase its rates by 5.36% for the 2026/27 financial year and 6.19% for 2027/28.

The Minister of Energy said that the government would work with Eskom in order to increase efficiency and to compensate for the lower-than-requested tariff increases.

In a press release, Kgosientsho RAMOKGOPA, the energy minister said that he was pleased with the fact these tariff adjustments took into consideration the need to reduce inflationary pressures for communities and businesses.

Eskom announced last month that they expected to report their first annual profit for eight years. This was due to an improved performance in the field and state-funded relief.

The company announced earlier on Thursday that it had generated 183.7 billion rand (about $9.9 billion) in revenue during the six-month period ending Sept. 30, an increase of 15.8% on the previous year. Profit after tax increased to 17.8 billion rand, up from a restated loss of 1.6 billion a year ago. $1 = 18.4647 rand (Reporting and editing by Jason Neely, David Goodman and Wendell Roelf)

(source: Reuters)