Eskom had applied for a 32% tariff increase for the 2023/24 year, which starts in April.

In the same tariff application, the cash-strapped power utility applied for a further 22.52% increase for 2024/25. Nersa has granted Eskom a 12.74% tariff increase.

The energy regulator said in a media statement the "extremely difficult decision" sought to strike a balance between the needs of Eskom and consumers.

A court order required Nersa to make a final decision on the tariff by 24 December, but the regulator was granted an extension to Thursday, 12 January after its Electricity Subcommittee required more time to deliberate on 14 areas of concern.

Eskom, which implemented continuous Stage 6 load-shedding this week, was motivated to implement large tariff hikes on the back of rising diesel costs. The utility spent R15 billion on diesel in the 2021/22 financial year – some R9 billion more than what Nersa would allow it to recover through electricity tariffs for that year.

Eskom recently reported a loss of R12.3 billion for the year ended in March 2022.

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