AfriForum will investigate the rationality of Nersa’s Eskom tariff increases

Power consumers should no longer pay for Eskom corruption – AfriForum

The civil rights organisation AfriForum is ready to investigate the rationality of the power tariff increases announced for Eskom today by the National Energy Regulator of South Africa (Nersa) and determine whether it meets all the legal requirements. Nersa has today announced approval for an Eskom tariff increase of 12,74% for 2025/2026, 5,36% for 2026/2027 and 6,19% for 2027/2028. These increases are much lower than the increases of 36,14%, 11,81% and 9,1% for which the power supplier applied for the three financial years.

Nersa’s announcement follows just one day after the release of Eskom’s audit report by the auditor general. For the third consecutive year, Eskom received a qualified audit with findings.

“Although it appears that Eskom is currently doing much better with the delivery of electricity to consumers, sound, accountable financial management remains an art that they just cannot seem to master,” explains Morné Mostert, Manager of Local Government Affairs at AfriForum.

Last year, AfriForum warned the regulator in a presentation at the public hearings held on the Eskom tariff increase application not to further allow Eskom’s recovery of expenses incurred unlawfully. “The auditor-general’s report confirms that financial losses and fruitless, wasteful and unlawful expenditure due to criminal conduct and poor internal control of expenditure is a serious problem in Eskom,” says Mostert. “From the tariffs approved today for the power supplier, it appears as if Nersa allows Eskom’s continued recovery of unlawful expenses through power tariffs.”

“Electricity consumers may no longer be held responsible for funding Eskom’s corruption. Until financial mismanagement is not eradicated at Eskom, Nersa must ensure that no unnecessary costs are passed on to consumers,” concludes Mostert.

AfriForum emphasises that an investigation into the rationality of Nersa’s decision will now be carried out in the interest of electricity consumers to ensure that consumers are properly protected.