Electricity minister Kgosientsho Ramokgopa aims to finalise a predictable tariff path by 2026 as a mechanism to manage costs to keep electricity increases within single digits.
Last month, energy regulator Nersa conceded that a miscalculation had resulted in errors in its tariff calculations and approved a R54bn clawback for Eskom.
Nersa’s miscalculation paved the way for additional charges that will be phased in from 2026. Consumers will shoulder R12bn in higher tariffs in the 2026/27 financial year and R23bn in 2027/28. The amount for 2028/29 is under review.
Eskom had initially sought R107bn, arguing Nersa’s decision contained big errors.
It is not the first time the regulator’s methodology has been called into question. Its pricing decisions over the past decade have repeatedly been overturned or amended in court.
“We want to get to a point where there’s a predictable tariff path…. Worst-case scenario would be inflation related, and in that way, you have determined a tariff by a path and people can be able to plan, including industries, the levels of investment and what it will cost for them to run their businesses and what it will mean to ordinary consumers,” Ramokgopa said at Eskom’s summer outlook briefing on Friday.
“We have set ourselves a target of, I think, by the first half of next year, we should have finalised the process.
“We’ve [Eskom has] always asked for the creation of rules to support the reform, and we are now in the process that is ably led by Nersa to create the rules. As we speak, seated here now there’s been … a full day workshop to deal with the reforms and the rules required by all participants, including Eskom,” the power utility’s CEO, Dan Marokane, said.
Marokane said public consultations on the potential new tariff policy would include issues related to trading licences.
In July Eskom filed an application in the Gauteng high court to have Nersa’s approval of trading licences for Green Electron Market, CBI Electric Apollo, Greenco Power Services, Discovery Green and Noa Group Trading reviewed and set aside.
“The bigger conversation, this we have admitted, was that if you look at the capacities of Nersa, they were not designed for the current environment that is mutating rapidly. We have entered a phase of reforms. The design and the skills in [Nersa] are not necessarily aligned to this environment.
“It is important that we are able to ensure that we bring additional capacity meant to ensure that there’s some degree of alignment in relation to the skills that are at Nersa and the kind of dispensation that we have entered,” Marokane said.
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