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The National Energy Regulator of South Africa (Nersa) has released Eskom’s multi-year price determination (MYPD) revenue application, covering the financial years from 1 April 2025 to 31 March 2028.
Eskom’s application adheres to the MYPD methodology prescribed by Nersa, currently in its sixth iteration, hence referred to as MYPD 6. The revenue decision will be determined following a series of public consultations and comprehensive analysis by Nersa.
Eskom asserts that this application will contribute to its financial stability through the adoption of cost-reflective pricing and the efficient operation of its Generation, Transmission, and Distribution divisions. Further adjustments towards fully cost-reflective tariffs to cover the complete cost of capital will be considered in future applications to reduce the burden on taxpayers.
Nersa’s decision will inform tariff implementations starting from 1 April 2025. Eskom’s Chief Financial Officer, Calib Cassim, urged stakeholders to participate in the public consultation process, stressing that their input is vital for securing sustainable electricity funding, which is crucial for economic growth and improving quality of life.
Cassim highlighted that the regulator will consider the affordability of tariffs for vulnerable sectors, including indigent customers and certain industrial sectors, while making its decision. Eskom’s revenue request is based on its operational costs to ensure reliable electricity provision while maintaining financial viability through a transition to cost-reflective prices.
For the financial years 2026, 2027, and 2028, Eskom has applied for total revenues of R446 billion, R495 billion, and R537 billion respectively. This equates to proposed average price increases for Eskom’s direct customers of 36.15% (2025/26), 11.81% (2026/27), and 9.10% (2027/28).
In addition to the MYPD 6 application, Eskom has submitted a retail tariff plan (RTP) to Nersa, outlining proposed structural changes intended for implementation from 1 April 2025, subject to Nersa’s approval. The RTP aims to introduce pricing that reflects costs accurately, supporting the long-term sustainability of the electricity supply industry.
Nersa will engage with stakeholders on Eskom’s revenue application as part of its decision-making process. Eskom is required to submit its revenue requirements to Nersa for a final determination.