By Enyichukwu Enemanna
South Africa’s energy regulator has given the green light to state-owned Eskom to raise electricity tariffs by 12.7%, far below the amount proposed by the utility company, which is trying to turn around its finances amidst a debt crisis.
Eskom had submitted a 36% increase request to the National Energy Regulator of South Africa.
The Pretoria-based regulator, in an online briefing on Thursday, stated that Eskom had increases approved for three financial years: 12.7% for this year to March 2026, 5.36% for 2027, and 6.19% for 2028.
Eskom, which received R250 billion ($13.5 billion) in a government bailout, asked the regulator to raise tariffs by more than a third to avoid having to request further state funding.
Eskom’s fresh request for a price hike drew criticism from civil society groups, municipalities, and Electricity Minister Kgosientsho Ramokgopa, who said it would undermine economic growth and deepen poverty in one of the world’s most unequal nations.
The power utility has long pursued cost-reflective tariffs to offset increases in primary energy costs, including the coal it relies on to generate more than 80% of South Africa’s electricity.
Eskom has succeeded in stabilising the national energy supply since March last year after years of frequent outages caused by breakdowns at its poorly maintained coal-fired power plants.
Chief Executive Officer Dan Marokane, who took office in March 2024, is looking to grow the business, including through an expansion of its renewable-energy assets.
