South Africa's energy regulator has approved larger electricity rate increases for state utility Eskom than previously authorized, following admissions of calculation errors. The National Energy Regulator of South Africa (Nersa) granted an 8.76% increase for April 2026 and 8.83% for April 2027, significantly higher than the originally approved 5.36% and 6.19%.

This decision comes after Nersa acknowledged mistakes in its tariff calculations for the 2025/26 to 2027/28 financial years. The regulator emphasized that the revised increases balance Eskom's financial sustainability with customer affordability concerns. The settlement reached with Eskom in July followed an initial rate-setting in January 2025.

Eskom, which supplies most of Africa's largest economy's electricity, has faced years of financial crisis partly attributed to tariff decisions. The utility achieved its first full-year profit in eight years last year, aided by government bailouts and improved performance at coal-fired power stations. However, the High Court rejected the July settlement in December, ordering Nersa to make a fresh determination after public submissions.

The increased tariffs reflect ongoing challenges in South Africa's energy sector, where Eskom's financial health remains critical to national economic stability. The regulator's admission of errors and subsequent adjustments highlight the complex balance between ensuring utility viability and protecting consumer interests in a struggling economy.

Quick Fact: Eskom made its first full-year profit in eight years last year.