South Africa’s electricity affordability debate is intensifying as civil society groups challenge the tariff framework behind repeated price increases. The Green Connection has urged the National Energy Regulator of South Africa (NERSA) to reject further Eskom tariff hikes, arguing that rising electricity costs are deepening energy poverty and placing additional pressure on low-income households. The organisation says the regulator must look beyond Eskom’s revenue requirements and consider the social, economic and environmental consequences of its pricing decisions.
The dispute centres on Eskom’s multiyear price determination process, which establishes the revenue the utility can recover through electricity sales. NERSA’s revised determination resulted in an average tariff increase of 8.76% for Eskom’s direct customers in 2026/27 and a further 8.83% for 2027/28. The increases followed a redetermination of Eskom’s allowable revenue after errors were identified in the valuation of its regulated asset base. The approved adjustments mean consumers face higher electricity costs even as affordability remains a concern.
The Green Connection argues that consumers should not bear the full burden of regulatory and institutional failures. It has called for greater transparency in Eskom’s asset valuations, stronger public participation and a review of the electricity pricing framework. The organisation also argues that NERSA must consider its legal obligations relating to environmental protection and social welfare when assessing electricity prices, rather than treating revenue recovery as the only priority.
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The consequences extend beyond household electricity bills. Higher power costs can increase operating expenses for small businesses, manufacturers and other electricity-intensive industries, while households may have less money available for food, education, transport and healthcare. The pressure can be particularly severe for people who rely on prepaid electricity or buy power through municipalities, where local tariffs and additional charges can make the final cost different from Eskom’s average increase. Civil society groups have also called for stronger Free Basic Electricity support for low-income households.
The debate raises a broader question about how South Africa should finance a reliable electricity system without making access increasingly unaffordable. Eskom needs revenue to maintain and upgrade its infrastructure, but tariff decisions also affect demand, industrial competitiveness and the ability of households to meet basic needs. The Green Connection’s intervention adds to calls for pricing reform that balances utility sustainability with consumer protection and a transition towards cleaner energy. With the 8.83% increase already approved for 2027/28, the immediate issue is how future tariff decisions can better account for affordability and public interest.
