The National Energy Regulator of South Africa (Nersa) on Monday published Eskom’s multi-year price determination (MYPD) revenue application up until 2028.
According to Eskom, the application covers the power utility’s financial period beginning on 1 April 2025 to 31 March 2028.
Eskom explained that it follows the MYPD methodology as prescribed by the regulatory authority.
‘This methodology is now in its sixth application; hence the process is referred to as MYPD 6,’ the statement read.
Nersa will decide on the revenue Eskom can receive following its analysis and the regulator conducting a series of public consultations.
Eskom believes that this application allows for an improvement in the financial sustainability of Eskom through the migration to cost-reflective prices and the successful operation of Generation, Transmission and Distribution in Eskom.
‘Further migration towards cost reflectivity to cover the full cost of capital would be considered in subsequent applications. This would minimise the im
pact on the taxpayers.’
In accordance with its revenue decision, Eskom said Nersa will then make tariff decisions for implementation from 1 April 2025.
As per Eskom, it can only implement tariff decisions made by Nersa.
‘We are entering the next phase of the regulatory process where Nersa will conduct an extensive public consultation about Eskom’s revenue application and we urge as many stakeholders as possible to become involved so Nersa can determine a key component in the funding of a constant electricity supply that drives economic growth and our quality of life for years to come,’ said Chief Financial Officer of Eskom, Calib Cassim.
Cassim stated that as Nersa makes its decision, it will consider affordability for identified vulnerable sectors including indigent customers and certain industrial sectors.
‘Eskom has made its revenue application based on the costs it will incur to efficiently provide electricity to the customer and it is a critical component in ensuring Eskom continues to provide relia
ble electricity services while improving its financial sustainability, through a migration to cost-reflective prices,’ he added.
The utility said it was applying for total revenues of R446 billion for the 2026 financial year, R495 billion for 2027 and R537 billion for 2028.
This translates to the proposed average price increases for Eskom direct customers are 36.15% (1 April 2025 to 31 March 2026), 11.81% (1 April 2026 to 31 March 2027) and 9.10% (1 April 2027 to 31 March 2028).
In addition to the MYPD 6 application, Eskom submitted a retail tariff plan (RTP) to Nersa outlining proposed structural changes, which are expected to be implemented from 1 April 2025 once all Nersa approval and governance processes are concluded.
‘The RTP aims to introduce cost-representative pricing that supports the long-term sustainability of all participants in the electricity supply industry.’
Nersa will consult with stakeholders on Eskom’s revenue application, as part of its decision-making process.
Eskom is required to
submit to the regulator the revenue it requires for Nersa to make its determination.
Source: South African Government News Agency