Eskom Holdings SOC Ltd., South Africa’s state-owned power utility, has announced its intention to request a 36% tariff increase, citing financial pressures stemming from government mismanagement and regulatory errors. The request comes as Eskom continues to struggle with rising debts, despite receiving a 250 billion rand ($14 billion) government bailout. Eskom officials pointed to delinquent municipalities that have failed to settle outstanding payments, along with the regulator’s miscalculations in previous tariff applications, as the primary reasons for the necessary price hike.
This proposed 36% increase would cover the 12 months leading up to March 2026 and aims to shield Eskom from further financial instability, reducing the likelihood of the company requiring additional government bailouts in the future. Following this period, Eskom plans to introduce more moderate tariff increases of 11.8% and 9.1% over the subsequent two years.
