Impower Solar is calling on South Africans to submit their comments on the Eskom tariff adjustment to the National Energy Regulator of South Africa (Nersa), as the deadline fast approaches.
The regulator is currently seeking input on a proposed R76bn adjustment, a significant increase from the R54bn settlement previously rejected by the High Court.
Challenges for meaningful public engagement
The public participation process, which concludes on 21 January 2026, follows successful legal challenges by civil society and industry bodies.
These challenges underscored that previous revenue agreements reached between Nersa and Eskom lacked the necessary transparency and public consultation required for such high-impact economic decisions.
Matthew Cruise, business development expert at Impower Solar, notes that the timing and nature of the consultation document present challenges for meaningful public engagement.
"The release of a document of this significance on 30 December, with a submission deadline of 21 January, provides a very narrow window for the public and businesses to respond," says Cruise.
"Furthermore, the consultation paper focuses on technical, legal and accounting questions rather than simply asking if the increase is acceptable.
“It effectively asks the public to provide input on how to prevent Eskom from receiving undue compensation across 10 specific areas."
Jason van der Poel, Kiera Bracher, Sabeeha Loonat and Junaid Nyker 14 Jan 2026 Incorrectly calculated
The R76bn figure stems largely from a R62bn shortfall in depreciation and a R14bn return on assets that Nersa admitted were incorrectly calculated in previous determinations.
"It is concerning that after 15 years of price determinations, the regulator and the utility are still in dispute over fundamental accounting principles like asset depreciation," Cruise says.
“The depreciation in question often relates to power stations where construction costs were significantly higher than originally budgeted.
“South African consumers are now being asked to cover the accounting consequences of those overruns."
If the R76bn adjustment is approved, it is estimated that electricity tariffs could rise by approximately 10.5% this year, compared to the 5.36% originally projected before the redetermination.
This would contribute to an average annual increase of roughly 15% over the last five years.
Straining the economy
Cruise warns that these continuous hikes risk further straining the national economy.
"We are seeing a trend where the regulator seems to struggle with its core mandate: ensuring electricity remains affordable while holding the utility accountable for cost management.
“When major industrial players or specific sectors receive tariff relief, that revenue shortfall is typically recouped from other businesses and households."
A final decision by the regulator is expected by 30 January 2026, with approved adjustments likely to take effect on 1 April 2026 for direct Eskom customers and 1 July 2026 for municipal customers.
