Business Report

DA demands NERSA come clean on R54 billion tariff blunder that will cost South Africans

COSTLY MISTAKE

Kevin Mileham|Published

DA demands NERSA come clean on R54 billion tariff blunder that will cost South Africans, says the writer.

Image: Supplied

The Democratic Alliance (DA) has today written to the Chairperson of the National Energy Regulator of South Africa (NERSA), demanding a full, public explanation for the catastrophic R54 billion error made in Eskom’s recent tariff determination. This is not the first such mistake, nor even the first matter taken on judicial review by Eskom.

This monumental blunder is not a simple "mistake": it is a sign of gross incompetence at the heart of our country's energy regulator.

The consequence is that already-struggling South African households and businesses will be forced to pay billions more for electricity to cover for NERSA's failure. The decision to rectify this via a quiet settlement with Eskom, which will see tariff hikes soar to 8.76% in 2026/27 and 8.83% in 2027/28, is a slap in the face of every citizen.

The DA will not allow South Africans to be taxed for state ineptitude. We have therefore taken the following immediate steps:

  1. We have formally requested the Chairperson of Parliament's Portfolio Committee on Energy and Electricity to convene an urgent inquiry into NERSA's internal processes and its fitness to regulate our energy sector.
  2. We have now written directly to the NERSA Chairperson, demanding public accountability and answers on how this occurred, who is responsible, and what steps will be taken to prevent such an incident from happening again.

The DA seeks a clear outcome: full transparency from NERSA, accountability for those responsible for this costly failure, and a complete overhaul of the regulator’s processes to ensure it is fit for purpose.

It is completely unacceptable that NERSA's incompetence and Eskom’s years of mismanagement and corruption will now be funded by the public. This incident has shattered public confidence in the regulator. South Africans deserve a regulator that protects them, not one that makes them pay for its (and ESKOM’s) mistakes. The DA will use every mechanism available to hold NERSA and the ANC government to account for this failure.

The DA will continue to fight for an affordable, reliable, and transparently-regulated energy supply for all South Africans.

Kevin Mileham MP - DA Spokesperson for Electricity and Energy