South Africa energy body rejects internal criticism over tariffs

South Africa’s energy regulator distanced itself from criticism by one of its senior officials over the body’s handling of electricity-tariff increases.

The National Energy Regulator of South Africa, which determines the rate at which state-owned utility Eskom Holdings SOC Ltd. can sell power, has overseen a six-fold rise in prices over the past 15 years. Nhlanhla Gumede, Nersa’s head of electricity regulation, blamed the increase on an inappropriate pricing methodology linked to outdated legislation.

The regulator failed to balance the interests of Eskom, consumers and the supply industry, he said in an Aug. 25 interview with the Johannesburg-based Sunday Times newspaper. The flaws resulted in consumers paying for mistakes made by the utility including the construction of its newest coal-fired power plant, the cost of which ballooned because of mismanagement and corruption. 

“Nersa distances itself from the contents and views expressed” by Gumede as they don’t represent the regulator’s interpretations and decisions, and instead reflect his personal opinion, the regulator said Wednesday in a statement.  

Eskom this week applied for tariff increases in the 2025-26, 2026-27 and 2027-28 financial years. The request is being assessed for regulatory compliance before being published for public comment.