Eskom’s 8.8% tariff hike kicks in on 1 April as fuel price shock looms

Eskom will implement an average electricity tariff hike of 8.76% for customers supplied directly by the utility from 1 April 2026, following a decision by the National Energy Regulator of South Africa (Nersa).

The power utility notes in a statement that the increase forms part of Nersa’s tariff determination for Eskom’s 2026/27 financial year and applies to customers who purchase electricity directly from the utility.

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The increase to 8.76% comes after Nersa corrected errors in its earlier tariff determination, which had initially set the rise at 5.36%.

Next year, the increase will amount to 8.83% instead of the previously announced 6.19%, as the additional R54 billion granted to Eskom by Nersa is phased in.

Municipalities that buy electricity in bulk from Eskom will implement their own tariff adjustments from 1 July 2026, averaging 9.01%, in line with the Municipal Finance Management Act (MFMA), which requires municipalities to introduce tariff changes at the start of their financial year.

South African consumers are already facing mounting cost pressures as the escalating conflict in Iran pushes global oil prices higher, with a sharp increase in local fuel prices expected from 1 April.

Data from the Central Energy Fund indicates petrol could rise by about R4 a litre and diesel by close to R7 a litre – potentially the largest monthly increase this century – which is likely to squeeze disposable incomes as transport costs filter through the broader economy.

‘Tariff hike to support reliable power supply’

Eskom group chief financial officer Calib Cassim says the utility is mindful of the pressure that rising electricity costs place on households and businesses.

“We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognising the affordability pressures on both residential and business customers.

“Achieving this depends on disciplined financial management and finding smarter, more efficient ways of operating,” he adds.

According to Eskom, the tariff adjustment is intended to support the utility’s ability to maintain a stable and reliable electricity supply.

The approved revenue requirement covers the cost of generating, transmitting and distributing electricity, while also allowing for the investment needed to maintain critical infrastructure.

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Nersa considered both customer affordability and the long-term sustainability of the electricity system when approving the increase, Eskom notes.

Subsidies still intact 

Subsidised tariffs will remain in place for certain categories of customers.

Homelight tariffs will continue to be subsidised, with these subsidies recovered through the affordability subsidy charge. Rural tariffs also remain subsidised because of the higher costs associated with supplying electricity in those areas.

These network-related subsidies are recovered through charges such as the electrification and rural subsidy (ERS) charge and the low-voltage charge, which help keep electricity accessible to low-income and rural households.

Eskom says operational improvements at its power stations have also contributed to stabilising the system over the past three years.

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The utility reports that the energy availability factor (EAF) has risen to 65.85% year to date, covering the period from 1 April 2025 to 12 March 2026, with the fleet reaching or exceeding 70% availability on 83 occasions.

Baseload units that run continuously have also improved significantly, with availability rising from about 9% two years ago to more than 98% today, according to Eskom.

Detailed tariff schedules for various customer categories will be published on Eskom’s website.

The new tariffs apply only to customers who purchase electricity directly from Eskom, while those supplied through municipalities will need to wait for tariff announcements from their respective local authorities, Eskom says.