File
The Nelson Mandela Bay Business Chamber has welcomed the decision by the National Energy Regulator to reject a massive 36% electricity hike being sought by Eskom.
CEO, Denise van Huysteen, said it was relieved that Nersa had approved an increase of 12.7% for the 2025/26 period.
However, she said this was still almost double the inflation rate”, and would drive inflation in other areas such as food and fuel.
Van Huysteen said it would also increase the overall cost of operating businesses in the country.
“While there has been good progress in stabilising electricity supply, with no load shedding taking place over a 10-month period, Eskom still has significant sustainability challenges which it needs to address.
“Key among these is that municipalities owe the power utility over R90 billion, and electricity supply at a municipal level has been inefficient due to vandalism, illegal tampering, incorrect billing and various other issues,” she said.
Van Huysteen said this in turn has resulted in a lack of investment, at a municipal level, in the maintenance and upgrading of electricity infrastructure.
“For the financial year 2025/26, the energy regulator approved an allowable revenue of R384 billion, which will amount to a 12.74% increase.
"For the year 2026/27, the energy regulator approved the allowable revenue of R409 billion, which amounts to a 5.36% increase, said Nersa chairperson Thembani Bukula.
He said the final year of the application, Nersa approved the "allowable revenue of R435 billion, which amounts to 6.19%.”
Bukula said the decision was taken while considering the concerns raised by members of the public during the extensive consultation process at the end of last year.
“The Energy Regulator recognises the challenges consumers face and the importance of ensuring that electricity remains affordable while securing Eskom’s financial sustainability.
“Our challenge has been and remains to regulate the energy industry in a manner that balances the interests of energy producers on the one hand and those of consumers on the other.
“This is never an easy task, for inevitably, it is influenced by the greater economic environment, both locally and internationally, and as directed by the policy environment of the Government,” he said.
