South Africans Are Paying for Nersa’s Expensive Eskom Mistake
This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
Electricity tariffs in South Africa are rising three times faster than inflation. And it’s not just due to Eskom’s financial problems. A big part of the current price hikes comes from a mistake made by the energy regulator, Nersa.
Here’s what happened:
Eskom applied for a tariff increase to help cover its costs.
Nersa approved lower increases but made calculation errors.
Eskom took the issue to court and pointed out a R107 billion shortfall.
Nersa admitted a mistake worth R54 billion and quietly settled with Eskom.
That R54 billion now has to be recovered by raising tariffs over the next few years.
The result?
Nersa admitted the mistake publicly, calling it a “data input error,” and said a “remedial process” plus “consequence management” is underway. But it come as no surprise that South Africans will be footing the bill. Not only are electricity prices going up, but so are the costs of goods and services, as businesses pass on the extra expenses to customers. It’s a double blow for consumers.
Professor Sampson Mamphweli from the South African National Energy Development Institute warns that price hikes above inflation hurt the economy—and that Eskom’s model of relying on tariffs alone is not sustainable.
He says both Eskom and Nersa need to reform:
Eskom must diversify its income and modernize its business model.
Nersa must improve its processes, work more closely with Eskom, and—critically—start holding people accountable for costly mistakes.
Without these changes, more errors could happen, and consumers will continue to pay the price.
So what’s the smart move?
Installing solar is starting to look less like a luxury and more like a lifeline.
Homeowners can save on bills, and small businesses can lock in predictable energy costs while competitors scramble. It’s one way to future-proof your finances in a country where power politics and pricing errors keep dimming the lights.
The message is clear: If Eskom can’t bring the power, maybe it’s time to harness your own.
Sources: Moneyweb article
