South Africans are still paying too much for electricity, with NERSA recently granting Eskom an increase three times that of inflation. 

Although OUTA submitted detailed comments to the National Energy Regulator of South Africa (NERSA) regarding Eskom’s Retail Tariff Plan (RTP) for 2025/26, NERSA still granted Eskom electricity price increases

OUTA is relieved that Eskom’s 34% increase was rejected, but the approved 12.74% increase from April 2025 (followed by 5.36% in 2026 and 6.19% in 2027) still remains excessive, continuing a pattern of inflated hikes that are disconnected from South Africans’ economic realities.

“Electricity prices are still far too high for consumers and businesses already struggling to keep the lights on,” says OUTA CEO Wayne Duvenage.

Eskom should cut costs, not raise prices

OUTA questions whether NERSA considered findings from the Auditor-General South Africa (AGSA) before granting the latest price hikes. The AGSA report highlighted serious governance failures at Eskom, including:

• Material misstatements in Eskom’s financial statements.

• Ghost vending and fraudulent prepaid electricity tokens, with Eskom admitting that 1.8 million prepayment meters are vending electricity without payment—resulting in losses of approximately R27 billion annually.

• A breakdown of controls in Eskom’s processes, leading to distribution losses of 13.9 TWh in 2023/24 due to electricity theft.

• Massive bad debts and illegal connections, with municipal debt expected to reach R110 billion by 2025.

“Why should South Africans keep paying more when billions are being lost to fraud, theft, and poor management?” Duvenage adds. 

We identified key issues driving high electricity costs, including:  

• Excessive energy costs – Poor procurement and outdated infrastructure inflate coal and diesel prices.

• Overstaffing & inefficiencies – Eskom remains bloated compared to global benchmarks.

• Municipal debt crisis – Unpaid municipal debt (R110 billion by 2025) remains unresolved.

• Corruption & mismanagement – Infrastructure theft, procurement fraud, and ghost vending cause massive losses.

We agree with the AGSA’s warning that Eskom has made little progress in addressing its financial and governance failures. OUTA urges immediate reforms to ensure electricity remains affordable, including: 

• Government must hold defaulting municipalities accountable rather than shift the burden to consumers. 

• NERSA must regulate in the public interest and address Eskom’s financial mismanagement.

• Structural reforms, efficiency improvements, and cost reductions are essential.

Read more about our submission here

More comment on NERSA’s decision to grant Eskom increases can be found here