South Africa’s electricity framework has been shaken by a significant error. In August 2025, the National Energy Regulator of South Africa (NERSA) confirmed a R54 billion miscalculation in its revenue decision for Eskom under the Sixth Multi-Year Price Determination (MYPD6). This was not a minor accounting slip—it carries real consequences for property owners and tenants who pay electricity bills.
NERSA acknowledged that its original MYPD6 revenue decision underestimated certain costs for Eskom, particularly regarding how generation assets were treated. Eskom initially requested R62.676 billion in additional revenue to address its shortfall. NERSA rejected the full amount and settled on R54 billion after reviewing the application.
The errors were substantial. NERSA Chairperson Thembani Bukula identified three main mistakes: a clerical “version control” error resulting in a R14.5 billion miscalculation in depreciation allowance for generation; an additional R20 billion due to incorrect application of rules for transferring work under construction assets into commercial operation; and a failure to correctly apply the Depreciated Replacement Cost rule, using zero balances instead of rolling forward prior-year values.
Reports suggest NERSA knew of the error before finalizing its decision in January 2025, yet did not correct it before publishing its official “Reasons for Decision” in June.
Parliament’s Portfolio Committee on Mineral Resources and Energy has placed affordability in the spotlight, demanding answers from NERSA regarding how such a large miscalculation could occur and what safeguards will prevent future occurrences.
The Democratic Alliance has referred the matter to the Public Protector, citing governance failures and technical weaknesses at NERSA. The complaint highlights transparency issues and calls for “consequence management” against those responsible.
NERSA has commissioned an independent audit to establish how the error occurred and to recommend remedial action. A senior staff member has been suspended for oversight of the data-entry error.
For ordinary South Africans already facing financial pressure, the result remains unchanged: higher electricity bills in the years ahead. Because of the settlement, Eskom will recover the R54 billion over time, which translates into higher electricity tariff increases than originally communicated.
