BERA sets date for BPC tariff hearing
Mbongeni Mguni | Wednesday January 21, 2026 14:55
The meeting is part of a consultative process initiated after the BPC requested an average 46% increase in tariffs from April 2026, with the adjustment for households proposed for 68%.
The BPC’s reasons for the request include recurring financial losses due to non-cost reflective tariffs, unreliable local generation and heavy reliance on imported power, escalating input costs, including fuel, maintenance, and financing expenses, as well as prolonged non-adjustment of tariffs before the 2025–2026 financial year.
The energy regulator said BPC’s proposal is for an average 46% tariff increase starting on April 1, 2026, with no subsidy from government and no other tariff increases or similar support from public revenues for the years to 2029-30.
In March, the BPC asked BERA for an average 38% increase for the 2025-26 financial year but it was instead awarded a 30% reduction in tariffs for domestic customers consuming less than 200 kilowatt-hours (kWh) per month and an average 24% increase in tariffs for all other customer categories. The changes took effect on July 1.
In its latest request dated December 15, the BPC said it had still not reached cost reflective tariffs despite the July increase.
The Corporation said its estimates showed that it would need revenues of P9.6 billion in the 2026-27 financial year, but expected to only receive P6.1 billion, excluding a government subsidy.
“Consequently, an upward tariff adjustment and/or tariff support is required to close the gap between the revenue requirement and the expected operating income, in accordance with the BPC Act and principles of cost-reflective tariffs,” the Corporation said.
Under its Act, the Corporation is required “conduct its affairs on a sound commercial line, and to prescribe electricity charges to ensure that its revenues are sufficient to produce a reasonable return on the fair value of its assets”.
The BPC said it had attempted to make its tariff proposals as fair as possible, considering the needs of low-income, rural, and otherwise disadvantaged groups.