After more than 10 months of uninterrupted electricity supply due to the success of the Generation Recovery Plan, Eskom has issued an alert indicating a high risk of load shedding at short notice.
The announcement came less than a day after the National Energy Regulator of South Africa (Nersa) had ruled against an application by Eskom for a 36% increase in electricity tariffs for the 2025/2026 financial year.
“This is a potentially temporary setback. Load shedding is largely behind us due to the structural improvements in our generation fleet. However, over the past seven days, we have experienced several breakdowns that require extended repair times. This has necessitated the use of all our emergency reserves, which now need to be replenished. Consequently, we are closely monitoring the status of our current emergency reserves, and load shedding up to Stage 4 may be implemented over the weekend,” said Eskom Group Chief Executive, Dan Marokane.
Eskom indicated that it would issue further updates in due course.
Read more: How South Africans fought and won against the devastating 36% Eskom increase bid
The Minister of Electricity Dr Kgosientsho Ramokgopa will provide an emergency briefing on the situation this afternoon.
Yesterday he welcomed Nersa’s announcement of the approved electricity tariff adjustments.
“While the approved tariff adjustments will place pressure on Eskom to stay the course with its investment strategy to strengthen and modernise its generation, transmission and distribution infrastructure, the ministry remains committed to working closely with Eskom to drive greater efficiency gains,” a statement by the ministry read. “This will ensure that operational improvements and cost reductions contribute to the utility’s long-term financial sustainability while safeguarding the affordability and reliability of electricity supply.
“We welcome the fact that these tariff adjustments take into account the need to mitigate inflationary pressures on communities and businesses, helping to stabilise the broader economic environment,” Ramakgopa said.
The announcement by Nersa was done yesterday afternoon.
Eskom requested R445,563-million, R495,355-million and R536,778-million for the 2025/26, 2026/27 and 2027/28 financial years, respectively. Based on Eskom’s application, the proposed standard tariff increases were projected at 36.15%, 11.81% and 9.1% for the three years.
The approved tariffs are:
- 2025/26 financial year — revenues of R385-million, which translates into a 12.74% increase.
- 2026/27 financial year — revenues of R410-million, a 5.36% increase.
- 2027/28 financial year — revenues of R437-million, a 6.19% increase.
Kevin Mileham from the Democratic Alliance said the return of load shedding this weekend would be a devastating blow to the people of South Africa.
“Businesses will suffer losses, households will be plunged into darkness, and the economy will take yet another hit. The DA stands with South Africans in their anger against this ongoing crisis. This latest warning from Eskom proves that the time for half measures is over. Tariff increases and quick fixes will not solve South Africa’s electricity crisis. Only bold, structural reform will.
“There must be an immediate recovery of the billions in municipal debt owed to Eskom. At the same time, Eskom’s generation and transmission divisions must be fully separated, and generation must be further broken up into multiple competing entities. This will drive efficiency, prevent monopoly failure, and allow for a more stable and competitive energy market,” Mileham added.
Markets are highly sensitive to Eskom’s performance, a point underscored by the rand’s tumble on Friday. It slid to 18.69/dollar on the news from R18.52/dollar in early trade before retracing back toward 18.60/dollar. The currency’s relatively solid performance in 2024 was partly a reflection of Eskom’s return to stability. DM