# summary

- Link: https://dearsouthafrica.co.za/nersa-r76bn/summary/
- Published: 2026-01-07T14:16:33+02:00
- Author: dearSA

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Public participation report – with all public comments

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This report was delivered to Nersa on 22 January 2026.

If you see value in what we do, please chip in – a small amount helps tremendously.

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[ Have your say](https://dearsouthafrica.co.za/nersa-r76bn/)

NERSA is re-calculating (redetermining) the value of Eskom’s Generation Regulated
Asset Base (RAB) and the associated Allowable Revenue for the financial years 2025/
26, 2026/27, and 2027/28.

This follows a High Court judgment that set aside NERSA’s previous decision (published
June 2025) and a subsequent settlement agreement. The Court ordered NERSA to fix
specific errors regarding depreciation and asset values and to consult the public
again before making a final decision.

[What is being Redetermined?](https://dearsouthafrica.co.za/nersa-r76bn/summary/#1738150189952-44103674-e29d31d9-c3be5d2b-dc14)

The consultation focuses only on the Generation business’s asset base and related
costs. Specifically, NERSA is looking at:

    - Depreciated Replacement Cost (DRC): The current value of Eskom’s power plants.
    - Depreciation: The cost of wear and tear on these assets.
    - Transfers to Commercial Operation: New assets (like power stations) coming
      online.
    - Work Under Construction (WUC): Capital spent on projects still being built.
    - Net Working Capital: Operational cash flow needs.
    - Asset Purchases: Buying new equipment.

[Financial Impact](https://dearsouthafrica.co.za/nersa-r76bn/summary/#1738150189975-5d0623dc-47dc31d9-c3be5d2b-dc14)

    - **Eskom’s Request:** Eskom originally applied for a total of R302 billion 
      in RAB-related revenue (returns + depreciation) over the 3-year period.
    - **NERSA’s Proposal:** After correcting errors, NERSA proposes allowing R271
      billion.
    - **The Gap:** NERSA has made downward adjustments to Eskom’s figures, particularly
      regarding assets transferred to commercial operation and working capital.

### _Top concerns and questions_

[The Cost of Eskom’s Assets vs. Tariff Affordability](https://dearsouthafrica.co.za/nersa-r76bn/summary/#1763554389233-fdb8fee6-6da45d2b-dc14)

**Context:** The court ruling requires NERSA to increase the value of Eskom’s assets(
the Regulatory Asset Base), which directly increases the electricity tariff.

**Question:** Given the current economic climate, do you accept a further increase
in electricity tariffs to fund a higher valuation of Eskom’s power plants, or do
you believe the asset values should be capped to keep electricity affordable?

[Paying for Aging and Unreliable Infrastructure](https://dearsouthafrica.co.za/nersa-r76bn/summary/#1763554389265-aa09206a-77665d2b-dc14)

**Context:** This redetermination decides which power stations are included in the
price you pay. This includes aging plants and those prone to breakdowns.

**Question:** Should consumers be forced to pay higher tariffs to cover the full
value of power stations that are near the end of their lifespan or frequently unavailable
due to breakdowns (load shedding)?

[Burdening Consumers with Construction and Operational Costs](https://dearsouthafrica.co.za/nersa-r76bn/summary/#1763554389298-fbc55a3c-817c5d2b-dc14)

**Context:** The proposed adjustments allow Eskom to recover billions from the public
for “Work Under Construction” and daily cash flow (“Working Capital”).

**Question:** Do you agree that the consumer should carry the additional financial
burden of funding Eskom’s incomplete construction projects and operational cash 
flow through increased electricity prices?

The full consultation paper

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Published notice

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### _In the News_

    - BusinessTech — [South Africans to pay for R76 billion mistake](https://businesstech.co.za/news/energy/847851/south-africans-to-pay-for-r76-billion-mistake/)
    - BusinessTech — [South Africans forced to pay for a R76 billion mistake](https://businesstech.co.za/news/energy/847271/south-africans-forced-to-pay-for-a-r76-billion-mistake/)
    - Moneyweb — [Nersa consults on R76bn additional revenue for Eskom from your pocket](https://www.moneyweb.co.za/news/south-africa/nersa-consults-on-r76bn-additional-revenue-for-eskom-from-your-pocket/)
    - East Coast Radio — [Public comment open on proposed Eskom tariff hike](https://www.ecr.co.za/news/news/public-comment-open-proposed-eskom-tariff-hike/)
    - MyBroadband — [South Africans on the hook for R76-billion Eskom blunder](https://mybroadband.co.za/news/energy/624245-south-africans-on-the-hook-for-r76-billion-eskom-blunder.html)
    - The Citizen — [When corporate mistakes become your expense](https://www.citizen.co.za/news/opinion/when-corporate-mistakes-become-your-expense/)

**SABC News ** South Africans will have to brace themselves for electricity price
increases in 2026 and 2027. The increases will be higher than the tariff increases
announced earlier in the year.

**Cape Talk ** Africa Melane speaks to energy expert Matthew Cruise from IMPOWER
as South Africans brace for possible electricity tariff hikes, with Nersa consulting
on a proposed R76 billion revenue recovery for Eskom following admitted regulatory
mistakes.

**Newzroom Afrika ** Prof. Valli Padayachee speaks to Stephen Grootes about Nersa
after it confirmed it miscalculated how much Eskom can charge for electricity.

**Moneyweb ** ‘Any price increase above inflation is bad for the economy… the prices
of goods and services go up because businesses pass on these prices to the consumers,
which means that the households are hit hard almost twice,’ says Professor Sampson
Mamphweli, South African National Energy Development Institute.

### _Statements and media releases_

Click on a logo to view.

Want to display your organisation’s statement? [Click here. ](https://dearsouthafrica.co.za/nersa-r76bn/summary/ nersa@dearsouthafrica.co.za?subject=org info for Nersa R76 info page)

Close

### Cape Independence Party

 **CAPEXIT Party strongly opposes the Business Licensing Bill in its entirety on
all points:**

**Preferential licensing**
 The Bill explicitly empowers the Minister to grant licences
on a “preferential” basis and to impose conditions that advance “historically disadvantaged
individuals” or other designated groups. This is nothing less than state-sanctioned
racial and ideological discrimination dressed up as transformation policy.

CAPEXIT rejects the notion that the state has any legitimate role in deciding which
racial or social group may or may not operate a business. Such preferential licensing
will:

    - Reintroduce apartheid-era economic controls under a new ideological banner;
    - Create a cronyist system where access to markets is determined by political
      connections and demographic criteria rather than merit, innovation or consumer
      demand;
    - Discourage both domestic and foreign investment, as investors will rightly
      fear that their businesses can be denied licences or subjected to arbitrary
      conditions on racial or political grounds.

No free society licenses businesses on the basis of the owner’s skin colour or historical
narrative. This clause alone renders the entire Bill unconstitutional and morally
indefensible.

**Principles of business licensing**
 The Bill fails to articulate any coherent,
objective, or proportionate principle for requiring a general business licence in
the first place. Instead, it presumes that every enterprise – from a street vendor
to a multinational corporation – must seek prior permission from the state simply
to exist and trade.

This reverses the fundamental principle of a free economy: citizens should be free
to engage in lawful economic activity without state permission unless there is a
clear, evidence-based justification (e.g. public health, safety or environmental
protection).

The Bill provides no such justification. It is a blanket assault on economic freedom,
reminiscent of the licence-permit raj that crippled India’s economy for decades.
Requiring a general “business licence” in addition to existing sector-specific permits(
liquor, health, zoning, etc.) serves no legitimate public purpose – only the purpose
of expanding state control and creating new opportunities for rent-seeking and corruption.

**Powers of inspectors**
 The Bill grants inspectors extraordinarily broad and invasive
powers, including warrantless entry into private premises, seizure of documents 
and goods, and the ability to close businesses on the spot. These powers are ripe
for abuse and will be weaponised against political opponents, non-compliant businesses,
and any entrepreneur who refuses to pay bribes.

In a country already plagued by corruption scandals, handing unelected officials
the power to enter and shut down businesses without judicial oversight is an open
invitation to extortion. Small businesses, spaza shops, and informal traders – many
of them immigrant-owned – will be particularly vulnerable to harassment and shakedowns.
Far from promoting transformation, this will simply create a new class of “licence
inspectors” who enrich themselves at the expense of the poor.

**More red tape**
 South Africa already ranks poorly on the World Bank’s Ease of
Doing Business index, largely because of regulatory overreach. This Bill adds yet
another layer of costly, time-consuming bureaucracy on top of SARS registration,
municipal permits, B-BBEE compliance, UIF, COIDA, sector SETA requirements, and 
dozens of other licences.

The compliance costs – application fees, mandatory consultations, endless paperwork,
and the risk of arbitrary refusal – will crush startups and force thousands of small
businesses to close or remain informal. Jobs will be lost, investment will flee,
and the tax base will shrink. The Western Cape, which has consistently outperformed
the rest of South Africa precisely because of lighter and more efficient regulation,
will see its competitive advantage deliberately sabotaged by Pretoria.

**Conclusion**
 The Business Licensing Bill is not reform – it is economic sabotage.
It centralises power in the hands of an already overreaching and underperforming
national government, reintroduces racial criteria into commerce, and erects new 
barriers to entrepreneurship at a time when South Africa desperately needs growth
and jobs.

CAPEXIT calls for the complete withdrawal of this Bill. The people of the Western
Cape, and indeed all South Africans who believe in freedom, will not accept a return
to a permit-based economy controlled by bureaucrats and political gatekeepers.

For a free, prosperous, and non-racial future, this Bill must be rejected in its
entirety.