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energy regulation challenges

south africa electricity tariffs eskom financial crisis
Business

Power in Flux: Unpacking South Africa’s Electricity Tariff Dilemma

by Tumi Makgale
August 28, 2025

South Africa’s electricity prices are rising because the energy regulator, Nersa, made big mistakes in calculating how much money Eskom needs to run the power system. This error left Eskom short by over R100 billion, forcing a legal battle and a settlement that pushed tariffs up by nearly 9% a year. These higher costs hit families and businesses hard, making electricity less affordable and sparking frustration across the country. The problem reveals deeper issues in South Africa’s power system, showing how crucial it is to fix mistakes quickly and rebuild trust for a brighter energy future.

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