South Africa’s energy regulator, Nersa, is facing mounting criticism after admitting to a R54-billion error in its calculations for Eskom’s revenue, a mistake that could result in steep electricity tariff hikes for consumers over the next two years.
On Wednesday, 10 September 2025, Nersa appeared before Parliament to account for the error, which arose during Eskom’s challenge of its sixth multi-year price determination (MYPD6). The regulator conceded it had underestimated Eskom’s costs, allowing the utility to potentially recover the shortfall in the 2026/27 and 2027/28 financial years.
Although Nersa identified the mistake as far back as January, it was never corrected. The admission has sparked public outrage, particularly after it emerged that the regulator quietly reached a settlement with Eskom before the matter was exposed by the media.
Nersa executive Nomfundo Maseti called the blunder “regrettable,” saying new quality assurance measures and advisory reviews were being introduced. She confirmed that the employees involved would be held accountable. Nersa chair Thembani Bukula told MPs the official responsible had already been suspended, but described the matter as a clerical rather than competency failure.
“This figure doesn’t represent an additional allowance,” Bukula said, “but the amount that should have been awarded originally.”
The explanation was rejected by opposition MPs. DA energy spokesperson Kevin Mileham vowed his party “would not rest” until those responsible were identified and sanctioned.
“Consequence management is not optional. It is unacceptable that consumers must pay for the ineptitude of state officials who continue to draw salaries,” Mileham said.
Civil society organisations consider legal action
Morné Mostert, Manager of Local Government Affairs at AfriForum
The revelation has triggered fury from civil rights and watchdog groups, who argue the settlement will leave households and businesses with even higher electricity bills.
The Organisation Undoing Tax Abuse (Outa) accused Nersa of eroding public trust by keeping the deal with Eskom secret. Outa executive director Advocate Stefanie Fick warned that further tariff hikes could deepen South Africa’s cost-of-living crisis.
“Electricity is already unaffordable. In many homes, it’s a choice between paying for power or putting food on the table,” Fick said. “Businesses are closing, jobs are being lost, and major companies may relocate to friendlier markets.”
Fick confirmed that Outa is consulting its legal team to explore intervention “in the public interest.”
AfriForum echoed the criticism, questioning the constitutionality of Nersa’s closed-door negotiations with Eskom. The group argued the secrecy undermines the regulator’s duty to act with transparency, accountability, and in the best interests of the public.
According to AfriForum, the settlement could drive electricity tariffs up by nearly 9% in both the 2026/27 and 2027/28 financial years.
