The proposed adjustment forms part of an above-inflation shock for consumers, with the Democratic Alliance (DA) pointing out that an 8.83% increase slated for 2027/28 sits at nearly three times the Reserve Bank’s 3% inflation target.
Nersa and Eskom Multi-Year Price Determination
The utility is requesting permission to implement the third year of its multi-year price determination decided in 2025. Last year, Eskom asked Nersa for a 36% increase in tariffs from April 2025, alongside 11% and 9% increases for 2026 and 2027. The sixth multiyear price determination (MYPD6) confirmed that Eskom made a total allowable revenue application of R446 billion for 2026, R495 billion for 2027, and R537 billion for 2026. The application includes Regulatory Clearing Account determinations permitting the recovery of revenues when prior tariffs were set too low.
Kevin Mileham and Democratic Alliance Objections
The latest proposals have drawn sharp criticism. DA spokesperson on electricity and energy Kevin Mileham stated that while electricity grows less affordable, Eskom’s internal costs continue to rise. Mileham noted that direct employment costs per employee increased by roughly 24% between 2022/23 and 2024/25, average remuneration rose by 7% in 2025/26, and short-term incentive obligations reached R5.1 billion alongside material increases in executive and board remuneration. While acknowledging Eskom’s improved operational performance, Mileham argued that reported profits cannot be separated from taxpayer-funded debt relief and financial support, adding that the utility must publicly account for containment of internal costs and launch a petition calling for the application to be rejected.
Wayne Duvenage and Outa Tariff Criticisms
Wayne Duvenage of Outa similarly argued that Nersa should withhold high increases, noting that profitability against a drop in kilowatt-hours sold indicates tariffs are already too high. Duvenage asserted that Eskom has been bailed out from excessive increases previously and must now consider holding or reducing tariffs while curtailing excessive manpower costs.
The tariff debate follows Eskom’s posting of its second consecutive profitable year, reporting a profit after tax of R30.3 billion—more than double the restated R14 billion recorded in 2025—which executives attribute to stronger operations, tighter cost control, improved energy security, and a shift toward long-term sustainability.
