Eskom’s tariff application reflects big rise in subsidy support for energy-intensive firms

A policy decision to allow electricity-intensive companies operating in South Africa to enter into negotiated pricing agreements (NPAs) with Eskom is set to contribute 5.7% to any tariff increase approved for implementation in respect of standard-tariff customers on April 1 next year. Eskom has included an application for 10 additional NPAs in its larger submission to the National Energy Regulator of South Africa (Nersa) for allowable revenue of R445.6-billion for its 2026 financial year. If approved in full, this would translate to a 36.15% tariff hike next year and raise the standard tariff to 266.78c/kWh from 195.74c/kWh.