Eskom’s proposed 36% price increase for FY2026 is primarily driven by:

• NPAs: Ten new negotiated pricing agreements (NPAs) added 5.7% to the increase.
• NERSA Errors: Past NERSA decisions underestimated costs, leading to a roughly 10% increase due to RCAs.
• Coal Dependence: Continued reliance on coal-fired power stations due to delayed IPP projects.
• Operating Costs: Adjustments to operating costs and an increase in ROA to 4%.
• Carbon Tax: Introduction of the carbon tax in FY2026 contributes to the increase.

Other factors contributing to Eskom’s financial woes include:

• Corruption: Ongoing challenges with corruption, fraud, and theft.
• Municipal Debt: Unpaid debt from municipalities, which adds to Eskom’s financial burden.

While Eskom is working to address these issues, the steep price increase is likely to have a significant impact on consumers and businesses.

If approved by NERSA, this 36% price increase would show up as a 1 July 2025 local-authority tariff increase of 43.55% to municipalities due to the weirdness of the ERTSA methodology.

Ratepayers Revolt calls on all municipalities to make representations to NERSA calling for reasonableness in the electricity price increase. Specifically, ESKOM should not be allowed to include arrear debt, a 4% ROA, and environmental & carbon taxes, and the cost of NPA agreements in their allowable revenue application. Furthermore, the flawed ERTSA methodology must be rejected.

All ratepayers are urged to ensure that their municipality makes a representation to NERSA. A municipality that fails to respond appropriately should be challenged as it is either incompetent or indifferent to the plight of ratepayers