South African electricity consumers are being asked to comment on a proposed revenue adjustment for Eskom that could see them footing an additional R76 billion bill, a move prompted by a High Court ruling that overturned a previous settlement.
The National Energy Regulator of South Africa (Nersa) has formally called for public input on the massive revenue claim, with a deadline of 21 January for submissions. This stems directly from a December 2025 High Court judgment which set aside a R54 billion settlement agreement that had been reached between Nersa and the power utility.
The court’s intervention came after the Minerals Council South Africa and civil rights group AfriForum argued that the R54 billion settlement was reached without proper public consultation. The court agreed, ordering Nersa to undertake a consultative process before any decision on financing the disputed amount could be made.
Nersa’s executive manager for electricity, Rhulani Mathebula, acknowledged the public’s concern over the situation. “We understand the concern obviously that the public has around this matter and we wish we had done it differently ourselves as the regulator,” Mathebula stated in an interview.
The complex issue originates from Eskom’s multi-year price determination for 2025-2028, which was finalised by Nersa in January 2025 after nationwide consultations starting in August 2024. Shortly after the determination was announced, Eskom went to court, arguing that the allowable revenue set for its generation business contained a R107 billion shortfall due to calculation errors by Nersa, specifically regarding depreciation and the regulatory asset base.
Faced with the court challenge, Nersa had two options: let the litigation run its course or reach a settlement with Eskom to be made an order of court. The regulator opted for the latter, leading to the R54 billion settlement that has now been invalidated.
Mathebula confirmed that Nersa had acknowledged errors in its initial calculations for Eskom’s allowable revenue for the second and third years of the determination cycle. “We had acknowledged that indeed we also have realized that… there was an error that we needed to correct,” he said.
When challenged that the public would inevitably reject any proposal leading to higher electricity costs, Mathebula defended the consultation process. He stated the figures were not new and were part of the 2024 consultations, but the error resulted in the announced revenue being “less than what it was meant to be.”
“The figures we are requesting the members of the public to look at… and indicate what in their view should the regulator be considering as prudent costs and what should the regulator be considering as not prudent,” Mathebula explained. He insisted the process was not a “rubber stamp,” promising that all inputs would be considered and reflected in a published reasons-for-decision document.
The public now has until 21 January to make representations on the proposal, which, if approved, would ultimately lead to increased electricity tariffs for households and businesses. The outcome of this consultation will directly influence Nersa’s final decision on Eskom’s revenue application and determine the scale of future price hikes.