On 20 August 2026 the National Energy Regulator of South Africa (Nersa) announced that it is accepting public comments on Eskom’s proposed tariff structure, which would raise electricity prices by 8.83 per cent. The regulator’s notice, published on its website, invites anyone with a stake, from large industrial users to small shop owners, to submit views before the deadline.
A tariff structure is the formula that determines how much customers pay for each kilowatt hour of electricity. It includes a fixed component (a basic charge) and a variable component that reflects usage. When a utility like Eskom proposes a change, the regulator must assess whether the new rates are justified, affordable and in line with policy goals.
Why the 8.83% figure matters
The 8.83 per cent increase is the headline number in Eskom’s submission. It does not detail how the rise will be split between fixed and variable charges, nor does it explain which customer classes will feel the biggest impact. Those details are expected to be part of the full consultation package that Nersa will release later this month.
For small and medium enterprises (SMEs), electricity is often one of the largest operating expenses. A rise of close to nine per cent could push up production costs, force price adjustments, or squeeze profit margins, especially for businesses that run energy-intensive processes such as manufacturing, refrigeration or data centres.
Households will also feel the change. The average residential bill could climb by a similar proportion, adding pressure to budgets already stretched by inflation and load-shedding schedules.
Load shedding, the scheduled power cuts that have become a regular feature of South Africa’s electricity supply, is a separate issue, but it does influence the regulator’s thinking. When supply is unreliable, utilities argue that higher tariffs are needed to fund maintenance and new generation capacity. Critics, however, point out that raising prices without delivering more reliable power can erode public trust.
In the past, Nersa has required Eskom to submit detailed cost-recovery models, showing how each element of the tariff contributes to covering operating expenses, debt service and capital investment. Those models are subject to public scrutiny, and stakeholders can raise concerns about the assumptions used, for example, projected fuel costs or the expected lifespan of new power plants.
SME owners should watch the consultation closely. The comment period provides a formal channel to raise issues such as:
- Whether the proposed increase is proportionate to Eskom’s actual cost pressures.
- How the tariff change will affect small-scale users compared with large industrial customers.
- What mitigation measures, such as time-of-use pricing or rebates for low-income households, could be included.
Comments can be submitted online through Nersa’s portal, by email, or in writing to the regulator’s office in Johannesburg. The regulator typically allows a few weeks for submissions, after which it will compile the feedback, hold a hearing if required, and issue a final decision.
While the headline figure is clear, the broader context remains uncertain. Eskom has not yet disclosed the full breakdown of the proposed tariff structure, nor has Nersa provided an estimate of the likely impact on different customer categories. Those gaps mean that businesses and consumers will need to rely on the forthcoming detailed documents to assess the real cost implications.
In the meantime, SMEs can take a few practical steps:
- Review current electricity usage patterns and identify any avoidable waste.
- Consider investing in energy-efficiency measures, such as LED lighting or variable-speed drives, which can reduce the amount of electricity billed.
- Stay informed about the consultation timeline and prepare a concise comment that outlines specific concerns or suggestions.
Ultimately, the outcome will shape how much South Africans pay for power in the coming years. For business owners, the process is an opportunity to have a voice in a decision that touches the bottom line directly.
