Mediamec South African electricity users could soon be left paying R76 billion for a major Eskom-related regulatory error after the National Energy Regulator of South Africa (Nersa) opened a public consultation on a controversial settlement.
The issue follows a Pretoria High Court ruling in December 2025 that overturned an earlier R54 billion deal between Eskom and Nersa, which had been reached behind closed doors. The court ordered the regulator to reopen the process and allow public participation.
In a consultation paper released on 30 December 2025, Nersa revealed that Eskom’s Generation division would now be allowed to recover R76.066 billion over the MYPD6 period, made up of R14.036 billion in returns and R62.03 billion in depreciation. If approved, this amount would be recouped through electricity tariff increases, effectively shifting the cost onto consumers.
The original R54 billion agreement, concluded in June 2025, only came to light after media exposure in August. Had it gone ahead, Eskom would have been allowed to implement electricity price hikes of 8.76% from April 2026 and 8.83% from April 2027, far higher than the originally approved increases.
Civil society organisations have condemned the process, saying it shows a worrying lack of transparency. OUTA executive director Advocate Stefanie Fick said the secrecy surrounding the deal was deeply troubling.
“When state organs act like this, it is never good news,” Fick said, adding that OUTA was consulting its legal team to consider possible court action.
AfriForum has also criticised Nersa’s conduct, warning that it may be unconstitutional. The organisation said consumers should not be punished for regulatory mistakes that were made behind closed doors.
AfriForum’s Morné Mostert pointed out that even the regulator had acknowledged its own failures. “Nersa itself admits to the billions of rands worth of errors in its revenue calculations,” he said.
With South Africans already battling high electricity costs and a struggling economy, critics argue that allowing Eskom to recover tens of billions from the public would be both unfair and damaging. Civil groups insist that any decision affecting tariffs must be lawful, transparent and open to scrutiny.
Public comments on the settlement are open until 16:00 on 21 January 2026, after which Nersa will decide whether the R76 billion will be approved a decision that could have a major impact on every electricity user in the country.
