BERA approves 9% electricity tariff increase
Mbongeni Mguni | Tuesday July 14, 2026 11:04
In December, the BPC had requested an increase averaging 46% across the various categories of consumers. BERA, as the regulator, held a public hearing in February where many expressed strong opposition to the BPC’s request.
In a statement on Monday, BERA said it had settled on a nine percent uniform increase to take effect next month.
“The above adjustments were considered after a public hearing held on February 10, a comprehensive assessment of the application, stakeholder submissions and consideration of prevailing socio-economic conditions,” the authority said.
BPC’s original tariff request from December had sought a 68% tariff increase for domestic consumers, 41% for government and 40% each for commercial users and mining operations.
“The reasons for the proposed 46% upward average tariff adjustment as submitted by BPC 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, prior to the 2025–2026 financial year,” BERA notes showed at the time.
In March last year, the BPC asked BERA for an average 38% tariff increase for the 2025–2026 financial year and 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 December request, 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 2026–2027 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.
The latest tariff adjustment will be a body blow for consumers who are already struggling with the effects of fuel price increases and an economy yet to recover from two years of contraction. Inflation jumped from 4.2 percent in March to 10.7% in May due largely to significant increases in retail pump fuel prices, as a result of the Middle East conflict.
The fuel price increase is still reverberating around the economy in the form of adjustments made by other sectors, further pressurising consumers’ pockets.
The decision on the electricity tariff was originally expected in March in order to coincide with the start of the new financial year on April 1. However, it is understood BERA’s parent ministry of Minerals and Energy held back the increase in order to cushion consumers, as the new financial year coincided with the fuel price spiral.