Eskom Tariff
Increase 2026.

Diesel for emergency generation

When Eskom's coal stations underperform, it runs Open Cycle Gas Turbines (OCGTs) on expensive diesel. At peak load shedding, Eskom was spending over R1 billion per month on diesel. These costs flow through to the tariff.

Ageing fleet maintenance

Many of Eskom's coal stations are past their design life. Emergency maintenance, extended outages, and capital refurbishment programmes add to the cost base.

Debt servicing

Eskom carries over R400 billion in debt. While the government's R254 billion debt relief programme (announced 2023) transferred a portion, the remaining obligations still require significant annual repayments that form part of the revenue requirement.

Under-recovery from previous years

Historically, NERSA granted increases below what Eskom requested. This “regulatory clearing account” underfunding built up a deficit that subsequent tariff cycles must recover.

When is the next Eskom tariff increase?

Eskom's tariffs change on 1 April each year, following NERSA's Multi-Year Price Determination (MYPD) process. The most recent increase — 8.76% — took effect on 1 April 2026, bringing the Homelight Prepaid rate to 271 cents per kWh. The next increase will take effect on 1 April 2027. NERSA typically announces the approved rate in December or January of the preceding year.

What is the current Eskom tariff per kWh in 2026?

The current Eskom Homelight Prepaid tariff is 271 cents per kWh (R2.71/kWh), inclusive of VAT. This is the rate for residential customers billed directly by Eskom — mainly in peri-urban and some rural areas. If you buy electricity through a municipality (City Power, Cape Town, eThekwini, Tshwane, etc.), your rate will be higher because municipalities add their own distribution markup.

Who approves Eskom tariff increases?

Eskom's electricity tariffs are set by the National Energy Regulator of South Africa (NERSA), an independent regulatory body. Eskom submits a Multi-Year Price Determination (MYPD) application to NERSA outlining how much revenue it needs to cover generation, transmission, and distribution costs. NERSA reviews the application — including public submissions — and approves a tariff increase it deems reasonable. The increase then takes effect on 1 April of the applicable financial year.

Why does Eskom keep increasing its tariffs?

Eskom's tariff increases reflect the rising cost of generating electricity in South Africa. Key drivers include: the cost of emergency diesel for Open Cycle Gas Turbines (OCGTs) used during load shedding; coal price increases; debt servicing costs on Eskom's R400+ billion debt (partly absorbed by the government's debt relief programme); and the cost of maintaining and rebuilding ageing power stations. Municipal tariffs are additionally affected by the cost of local infrastructure maintenance and losses from electricity theft.

How do Eskom tariffs affect municipal electricity prices?

Municipalities buy electricity in bulk from Eskom at a bulk supply tariff (lower than the residential rate), then resell it to households and businesses at their own retail tariff. The municipality adds a markup to cover distribution infrastructure, maintenance, metering, billing, and often to cross-subsidise other municipal services. This is why municipal prepaid rates — for example in Johannesburg (City Power), Cape Town, or Durban (eThekwini) — are always higher than the Eskom Homelight Prepaid rate. Municipal tariffs update on 1 July each year, not 1 April.

What is the MYPD process and how does it work?

The Multi-Year Price Determination (MYPD) is the regulatory process NERSA uses to set Eskom's allowed revenue — and therefore its tariffs — over a multi-year period. Eskom submits a detailed application showing projected costs and required income. NERSA holds public hearings where consumers, industry bodies, and municipalities can comment. NERSA then approves a tariff level it believes covers Eskom's efficient costs while protecting consumers from excessive increases. The MYPD6 determination covers the period from FY2023/2024 through FY2025/2026, with subsequent years determined separately.

Is the electricity tariff increase the same for all customers?

No — different customer categories face different tariff structures. Homelight Prepaid (residential prepaid customers) has a flat energy charge. Homepower (post-paid residential) has an inclining block tariff where higher usage attracts a higher rate. Large industrial and commercial customers are on different tariff schedules (Megaflex, Miniflex, etc.) negotiated separately. The 8.76% increase applies across all Eskom tariff categories but the base rates differ significantly.

How does the 8.76% increase compare to inflation?

South Africa's headline CPI inflation for 2025 averaged approximately 3.2–3.5%. The 8.76% electricity tariff increase for 2026/2027 is therefore roughly 2.5 times the general inflation rate. Electricity tariffs in South Africa have consistently increased faster than CPI since 2008, when the initial wave of large Eskom increases began. Over the past decade, electricity costs have risen by more than 400% in nominal terms.