The National Energy Regulator of South Africa (NERSA) has published its draft market inquiry report on the impact of fixed charges and generation capacity charges imposed by electricity distributors. The report is now open for public consultation as the regulator seeks feedback from stakeholders before finalising its recommendations.
NERSA, which was established under the National Energy Regulator Act of 2004, regulates South Africa’s electricity, piped-gas, and petroleum pipeline industries. The market inquiry was launched on September 25, 2025, following increasing concerns from electricity consumers, businesses, municipalities, and other stakeholders about the affordability of electricity tariffs and the transparency of pricing structures.
According to the regulator, the inquiry focused on examining fixed charges, generation capacity charges (GCC), and other related fees collected by electricity distributors across the country. The investigation covered tariff structures implemented by Eskom as well as various municipal electricity distributors. The objective was to assess whether the current tariff framework fairly reflects the cost of providing electricity while ensuring that consumers are not subjected to unreasonable or unfair charges.
The draft report highlights several important findings related to tariff design, customer impacts, revenue recovery mechanisms, and competition within the electricity sector. It also examines the challenges municipalities face in implementing tariff reforms and discusses the broader implications of these issues for South Africa’s ongoing electricity market reforms.
NERSA stated that the inquiry was designed to improve transparency and ensure that electricity pricing remains fair, sustainable, and reflective of actual service costs. The regulator believes that public participation is essential in evaluating the findings and shaping future regulatory decisions.
The regulator has invited electricity consumers, municipalities, Eskom, organised businesses, industry associations, consumer groups, and all interested members of the public to review the draft report and provide comments. Stakeholders are encouraged to share their views on the inquiry’s overall approach, the accuracy of its findings, and the practicality of the proposed recommendations.
The draft market inquiry report and the accompanying consultation document have been made available on NERSA’s official website for public review. Written comments must be submitted via email to [electricity.marketinquiry@nersa.org.za](mailto:electricity.marketinquiry@nersa.org.za) no later than July 27, 2026. For additional information regarding the inquiry or the submission process, stakeholders may contact Ms. Phumla Botha at 012 401 4660. NERSA will consider all submissions received before preparing the final version of the market inquiry report.
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