After Eskom resolves the dispute, it is expected that electricity prices in South Africa will increase.

According to reports, following the agreement of all parties to a 540 billion rand settlement, the South African energy regulator will allow Eskom Holdings Limited to increase electricity prices by a higher rate than previously permitted. Currently, electricity demand is decreasing, and this move could further alienate customers. In a statement released by the South African National Energy Regulator on Wednesday evening, the state-owned power company had objected to a decision made by the regulator in January, and now this settlement is being seen as a "victory" the annual electricity price increase from April 1st will rise from the initial 5.36% to 8.76%. This hike far exceeds the South African Reserve Bank's forecast of an average 3.3% inflation rate for the next two years. In recent years, the South African economy has suffered from severe power cuts. Now, Eskom has managed to avoid record-breaking power cuts by improving the reliability of its coal-fired units and stabilizing the grid. Meanwhile, the South African government is moving forward with a plan to split Eskom into three separate entities: transmission, generation, and distribution, and open the market to private power producers who may offer electricity at lower prices. Particularly during the ongoing power cuts, the use of solar panels in South Africa has significantly increased, reducing the demand for Eskom's power. Between 2020 and 2024, the amount of electricity sold by the company to users decreased by 11%. According to the South African National Energy Regulator, Eskom stated in court documents that the electricity price standards approved by the regulator in January were based on incorrect data, leading to a revenue shortfall of 107 billion rand for the company. The regulator also noted that, as per the settlement agreement, the annual electricity price increase from April 1st, 2027 will be raised from the previously announced 6.19% to 8.83%.