Eskom has officially announced an 8.76% increase in electricity tariffs starting from April 1, 2026. Mayors from Democratic Alliance municipalities are calling on NERSA to reject Eskom's proposed electricity tariff increases, arguing that the hikes are unsustainable for consumers already burdened by rising costs.
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Mayors from several Democratic Alliance (DA) municipalities have launched a coordinated effort to oppose Eskom’s latest electricity tariff increases, calling on the National Energy Regulator of South Africa (NERSA) to reject the hikes. Their intervention comes after NERSA’s March 5, 2026, decision to approve an average 8.76% increase for Eskom’s direct customers, effective from April 1, 2026, with municipal bulk purchasers set to implement increases averaging 9.01% from July 1, 2026, in line with the Municipal Finance Management Act.
Eskom has defended the increases, with group chief financial officer Calib Cassim saying: “We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognising the affordability pressures on both residential and business customers. Achieving this depends on disciplined financial management and finding smarter, more efficient ways of operating.”
The utility argues that the revenue requirement is necessary to sustain operations, maintain infrastructure, and ensure a reliable supply, while continuing to subsidise Homelight and rural tariffs through affordability and electrification charges.
Eskom points to improvements in its generation fleet, noting that the Energy Availability Factor has risen to 65.85% year‑to‑date, with baseload units now available more than 98% of the time compared to just 9% two years ago. The utility insists that disciplined management and operational gains are strengthening its position.
But DA mayors from Drakenstein, Langeberg, Swellendam, Breede Valley, and the Cape Winelands District say they have formally written to NERSA demanding an immediate halt to increases of up to 10.5%. They argue that Eskom’s own financial disclosures show signs of recovery and a return to profitability, yet consumers are still being asked to absorb above‑inflation hikes.
“The people of South Africa cannot carry the burden of Eskom’s failures. This action by DA mayors shows that the financial struggles of the community are a serious matter to the DA because we care about the rising cost of living and will fight it in all ways we can,” the party states.
The DA warns that households, small businesses, and municipalities are being squeezed between Eskom’s pricing and community affordability, after years of rolling blackouts and escalating costs. They are calling for transparent and accessible public participation, stressing that communities must have a genuine opportunity to engage in decisions that directly affect their cost of living. The party has signalled that it will escalate the matter through parliamentary oversight if necessary, insisting that South Africans should not be forced to “pay more for less.”
The business sector has also raised an alarm. Brandon Horn, head of commercial at SolarAfrica, says: “An 8.8% tariff increase for Eskom-direct customers may sound manageable on paper, but for commercial and industrial (C&I) businesses, this will have a significant impact.” He says that a large electricity user consuming around 1 000 000 kWh per month could see annual costs rise by roughly R2.17 million, with peak winter charges adding as much as R200 000 per month. Horn warns that the increases coincide with a looming fuel price shock, compounding pressures on transport, logistics, and input costs.
He emphasises the need for businesses to diversify their energy mix, combining on‑site solutions like solar and battery storage with virtual options such as wheeling and energy trading. “Relying on a single source of electricity, particularly one with structurally rising costs, is becoming increasingly risky,” Horn says, urging companies to consider the full spectrum of charges when entering agreements.
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