Cape Town opposes Nersa plans for up to 100% extra Eskom increase
23 January 2026
Cape Town Mayor Geordin Hill-Lewis has called on Nersa to immediately cease plans to permit up to a doubling of Eskom’s tariff increase. Nersa wants to allow up to a 100% additional Eskom hike – from the original 5-6% to 9-10,5% annually for the next two years. This is due to a Nersa calculation error in the original Eskom tariff application. Mayor Hill-Lewis says the potential 100% hike is based on incorrect Eskom figures and should be scrapped. Read the Mayor’s full submission to Nersa as part of the court-ordered public participation which closed this week: https://bit.ly/45t7fbo .
‘We call on Nersa to immediately cancel plans to permit up to a 100% additional increase for Eskom over the next two years. Nersa should instead complete a proper, error-free assessment of Eskom financials.
‘The fact is Eskom is in a better financial position than forecasted to Nersa, based on actual interim Eskom financial results, which show that Eskom has been able to generate substantial profits even under the lower originally approved tariffs.
‘This is strong evidence that the public is being unfairly asked to absorb Eskom hikes of up to 10,5% annually for the next two years, which could end up being more than double the initially approved 5% to 6%.
‘Cape Town’s call is clear: Nersa must immediately halt plans for this additional hike, and redo Eskom’s price application to ensure fairness and accuracy,’ said Mayor Hill-Lewis.
The City’s submission states that there are various inaccuracies in Eskom’s tariff application besides Nersa’s original error of not taking Eskom asset depreciation into account. This includes Eskom’s improved financial performance, which the City points out can only rationally be explained by a combination of higher electricity sales and/or lower operational costs than what was forecasted to Nersa, requiring a full reassessment of the Multi-Year Price Determination.
‘Nersa’s redetermination process calls into question the credibility of Eskom’s tariff application, which has by Nersa’s own admission, data with underlying deficiencies. This includes the national power utility’s outdated asset valuation, critical for accurately determining Eskom revenue needs without overcharging residents and businesses. It is essential that all data submitted to the regulator by Eskom is accurate and properly verified given the cost-of-living implications on all residents,’ said the City’s Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
Under Section 15 (1) of the Energy Regulation Act, Eskom is not permitted to generate excessive margins on electricity sales or make consumers cover the costs of inefficient operations.
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Published by:
City of Cape Town, Media Office
