Eskom gets kick in the teeth over prices 

The National Energy Regulator of South Africa (Nersa) has introduced a revamped electricity tariff methodology called the electricity price determination methodology (EPDM), which could impact Eskom’s revenue collection.  

The new approach aims to shift from a revenue-based model focused on Eskom to a cost-to-serve approach that applies to a diverse network of electricity suppliers. One significant change is the discontinuation of the regulatory clearance account (RCA), which allowed Eskom to get additional price increases for future years to make up for past revenue shortfalls.  

Eskom’s average electricity tariff has surged over the years, and the EPDM rules are part of an effort to balance customer-focused regulation across the electricity industry. 

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