Cape Town pushes back against Nersa’s latest Eskom tariff increase

The approval by the National Energy Regulator of South Africa (Nersa) allowing Eskom to implement electricity tariff increases of close to 9% has reignited tensions between national regulators and local government. The decision follows a court-ordered reconsideration of Eskom’s multi-year price determination, ultimately resulting in higher approved increases than initially anticipated.

For ordinary consumers, the numbers translate into higher monthly bills at a time when inflationary pressure and rising municipal costs are already straining household budgets. Small businesses, many still recovering from years of load shedding and economic instability, say additional electricity hikes could further erode already tight margins.

While Nersa maintains that the adjustment is legally and procedurally sound, critics argue that regulatory recalculations should not automatically result in heavier financial burdens for the public. The debate has quickly moved beyond spreadsheets and revenue models to broader concerns about accountability and affordability in South Africa’s energy sector.

Cape Town’s formal objection

The City of Cape Town has strongly criticised the ruling, stating that it undermines efforts to shield residents from excessive increases. City officials argue that more recent Eskom financial data suggests improved performance, raising questions about whether such steep hikes remain justified.

Pressure on households and businesses

Cape Town residents have voiced frustration on social platforms and through civic organisations, warning that rising electricity prices compound existing service delivery costs. Many argue that electricity, as an essential service, should be stabilised rather than escalated during economic uncertainty. The issue also feeds into broader conversations about municipal energy independence and diversification. The Eskom Price Hike is said to Cost South Africa 90,000 Mining Jobs.

What happens next

Legal review remains a possibility, with the city assessing its options. Meanwhile, national energy policy developments continue to shape the regulatory landscape.

For many in Cape Town, the frustration is not only about percentages on a tariff sheet, but about trust and whether energy governance is truly balancing sustainability with fairness.