SOUTH AFRICA · ENERGY · ELECTRICITY PRICES
Key Facts
- —What happened Civic groups, a city government and opposition politicians objected to Eskom’s 2027/28 tariff plan at a public hearing of South Africa’s energy regulator on Thursday, 8 October 2026.
- —The increase Prices for customers Eskom supplies directly would rise by an average of 8.83% from 1 April 2027, and the bulk price for municipalities by 8.84% from 1 July 2027.
- —The price Eskom’s average standard price would rise from 240.28 to 261.50 South African cents per kilowatt-hour, or from about US$0.146 to about US$0.159.
- —Why so high After a court-ordered redetermination, the regulator raised Eskom’s allowed increase for 2027/28 from 6.19% to 8.83%, for revenue of R419.4 billion (about US$25.4 billion).
- —The dispute Fixed monthly charges on two household tariffs reach their full level, while per-unit rates fall, which critics say shifts costs onto homes that use little power.
- —What it means for you Eskom’s average price would sit above the 13.63 US cents per kilowatt-hour that US customers paid on average across all sectors in 2025.
South Africa’s state power utility, Eskom, met broad opposition at a public hearing of the National Energy Regulator of South Africa (NERSA) on Thursday, 8 October 2026, over how it plans to apply an average 8.83% price increase from April 2027. Civic groups, the City of Cape Town and opposition politicians warned that the rise, and a shift toward fixed monthly charges, would hit poor households hardest, according to accounts of the hearing published by the newspaper group IOL on 13 and 19 October.
The regulator is scheduled to decide on 26 November. For US readers, power costs shape the business case for American companies that mine or manufacture in South Africa, and Eskom’s average price would now sit above what the average US customer pays.
What Is Being Decided
The size of the increase is already set, and the hearing was about how Eskom spreads it across its tariffs. NERSA approved Eskom’s revenue for three years on 30 January 2025, but after the High Court set aside the figures for 2026/27 and 2027/28, the regulator redetermined them on 7 February 2026.
That decision allowed Eskom revenue of R419.438 billion (about US$25.4 billion) for 2027/28 on forecast sales of 160,395 gigawatt-hours, an average increase of 8.83%. The original 2025 decision had allowed 6.19% for that year and 5.36% for 2026/27, which became 8.76% after the correction.
Eskom’s own application shows the correction to the value of its power plants added R12 billion (about US$728 million) to allowed revenue in 2026/27 and R23 billion (about US$1.40 billion) in 2027/28. Eskom filed its tariff application on 31 July 2026, and written comments closed on 2 October.
Why Fixed Charges Are the Flashpoint
Homepower and Homeflex are Eskom tariffs for households it supplies directly, and they carry a fixed monthly service charge on top of the price per unit. Under the regulator’s earlier decision on Eskom’s Retail Tariff Plan, that charge is being phased in over three years and reaches 100% of its target level in 2027/28.
To keep the average rise at 8.83%, Eskom cuts the per-unit energy rates on those tariffs. A home that uses little electricity pays relatively more of the fixed charge, which is why several speakers said low users would face a bigger percentage increase than the average.
Who Objected
Sabelo Chalufu, founder of the Better Governance Initiative, a civic group, urged NERSA to reject the application and cited a petition with 18,206 signatures, IOL reported. His group’s small survey of 83 people found that households earning under R5,000 (about US$303) a month spend about 45% of their income on electricity.
The City of Cape Town, run by the Democratic Alliance, a centre-right party in the national coalition, asked that affordability be central to the decision. Funzi Ngobeni, a member of parliament for ActionSA, an opposition party founded by former Johannesburg mayor Herman Mashaba, asked why a household using less power should face a higher percentage increase.
AfriForum, an Afrikaner civil rights lobby, warned that higher fixed charges could push consumers who can afford it to invest in renewables and rely less on Eskom. Desmond D’Sa of the South Durban Community Environmental Alliance raised disconnections and the cost of prepaid meters.
The Green Connection, a Cape Town environmental justice group, said one day of hearings was not enough, IOL reported on 19 October. Small-scale fishers from the West Coast, the Northern Cape and the Wild Coast, communities the group works with, said fuel for a single fishing trip can cost more than R2,500 (about US$152).
Earthlife Africa Johannesburg, an environmental group, was due to present with partner groups from Gauteng, the Eastern Cape and Limpopo. “If Eskom made a profit last year, why should households have to pay more for electricity?” its Thabo Sibeko asked before the hearing, the news site Scrolla.Africa reported.
What Eskom and the Regulator Said
Kgabo Rathogo, speaking for Eskom, defended the plan as the next step in the phased introduction of fixed service charges, and said lower per-unit energy rates offset them, IOL reported. Eskom’s application says the change keeps the annual increase on those two tariffs in line with the 8.83% average.
Muzi Mkhize of NERSA said the regulator had at times gone beyond what its policies and laws allow, and that its decision has to stay within them, according to the same reports. The regulator’s consultation paper cites recent High Court judgments, including a case brought by AfriForum, as informing this process.
What It Means for US Readers
Eskom’s average standard price of 261.50 South African cents per kilowatt-hour works out to about 15.9 US cents. US customers paid an average of 13.63 cents across all sectors in 2025, and 17.30 cents for homes, according to the US Energy Information Administration.
The two figures are not exact equivalents, because Eskom’s average blends bulk sales to municipalities with sales to end users. Still, for American companies that mine, smelt or manufacture in South Africa, power is no longer a cheap input, and the tariff path is a cost to watch.
What Is Not Known
It is not known whether NERSA will approve the full step in fixed charges or soften it. The Rio Times found no transcript or summary of the 8 October hearing on NERSA’s website, so this account rests on press reports of what speakers said.
It is also not known what most households will pay, because municipalities set their own retail tariffs, which NERSA approves separately. The 8.84% figure is the rise in what municipalities pay Eskom, not what their customers pay.
What Comes Next
NERSA’s timetable has an internal subcommittee recommending a decision to the Energy Regulator, NERSA’s governing council, on 3 November, a decision on 26 November and notice to Eskom on 3 December. If approved, the new prices apply from 1 April 2027 for Eskom’s direct customers and from 1 July 2027 for municipalities.
Frequently Asked Questions
How much will Eskom electricity prices rise in 2027?
Eskom has applied for an average increase of 8.83% for customers it supplies directly. Municipalities would pay 8.84% more for the power they buy from Eskom.
When would the new Eskom tariffs take effect?
They would apply from 1 April 2027 for Eskom’s direct customers. Municipal tariffs would follow from 1 July 2027.
Why are fixed charges controversial?
Eskom is raising fixed monthly charges on its Homepower and Homeflex tariffs and cutting per-unit rates to compensate. Critics say this makes households that use little electricity pay a larger share.
When will NERSA decide?
The regulator’s timetable sets its decision for 26 November 2026. It plans to inform Eskom on 3 December.
Sources: NERSA, Consultation paper on the Eskom Retail Tariff Structural Adjustment application for 2027/28, September 2026 (copy hosted by BusinessTech), Eskom, FY2028 ERTSA application, standard tariffs (copy hosted by BusinessTech), Eskom, 2026/2027 tariff increase, US Energy Information Administration, Electric Power Monthly, Table 5.3, IOL (The Star), Eskom tariff increases challenged at NERSA public hearing, 13 October 2026, IOL (Cape Times), Eskom tariff restructuring faces affordability backlash at NERSA hearing, 13 October 2026, IOL (The Star), Eskom tariff hearing lays bare growing fears over cost of electricity, 19 October 2026, Scrolla.Africa, Nersa to hear calls to scrap Eskom hike, 8 October 2026, Paarl Post, Communities urge Nersa to reject Eskom tariff hikes, 8 October 2026, SABC News, Nersa seeks public input on Eskom’s 8.83% tariff structure proposal, 4 September 2026. Exchange rate: Friday 16 October 2026 close, 16.4881 rand per US dollar. All retrieved 19 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief