The National Energy Regulator of South Africa (Nersa) said it allowed Eskom to put up power prices by less than the amount that was originally agreed upon.
Power prices will go up by 16 percent from April 1.
Nersa had previously allowed Eskom to hike its prices by 25 percent.
The regulator said government decided to forgo its earnings to spare the consumer and businesses further costs.
It was good news for users who would be able to put away some cash back in their pockets.
Nersa’s Thembani Bukula said the power utility’s decision for a review followed a request from President Jacob Zuma.
“The president mentioned at the State of the Nation Address that he asked Eskom to review the tariffs because businesses are finding it difficult to survive with the current power prices.”
Bukula said the decrease in prices was made possible by government giving up their share of Eskom’s earnings.
“The government is willing not to take the returns that it has in Eskom as a shareholder.”
Eskom was expected to give more details about the tariffs on Friday afternoon.