Here’s how much Eskom wants to increase electricity tariffs in 2027

Eskom, the state-owned power utility in South Africa, is requesting an additional 8.83% tariff increase for households and municipalities in 2027, as reported by a news source. This comes after Eskom already raised tariffs by 8.76% and 9.01% for direct and municipal bulk purchases earlier this year. The proposed increases were presented to the Standing Committee on Appropriations, with officials outlining plans to develop a policy to raise the free basic electricity (FBE) threshold to 300 kWh.

However, committee members expressed dissatisfaction, arguing that the tariff increase is well above inflation and negatively impacting the cost of living. Eskom officials emphasized that the tariff increases are necessary to cover overheads and attract private investment, but committee members criticized the lack of transparency in explaining the calculation of the 8% figure and the measures taken to reduce costs.