As from the first of April in 2025, consumers of electricity in South Africa will experience serious increases in revenue tariffs granted by the National Energy Regulator of South Africa (NERSA) to go above both Eskom’s direct customers and municipal customers, making every effort possible to assist the utility in alleviating its financial and operational problems.
Eskom Direct Customers
All customers that get electricity directly from Eskom will have tariffs increased by an average of 12.74% with effect from April 1, 2025. This is part of Eskom’s drive for improved financial sustainability and the control of increasing operational expenditures.
Municipal Customers
Finalizing the municipal budget should also allow an adjustment that sets the increase in tariffs to be paid by municipalities buying electricity from Eskom at 11.32% effective July 1, 2025. This date is designed to coincide with the municipal financial year and to give room before such changes are initiated. It should be noted that municipalities may further increase the realized tariffs according to their particular needs.
Impacts On Residential Consumers
The new increases would, however, be different for residential customers based on their consumption profile.
- Low-Income Households: For instance, customers under the Homelight 20A tariff, designed for low-income users with limited capacity prepaid meters, will face rises of about 13.57% owing to the abolishment of the highly subsidized portion of the inclined block tariff for monthly consumption below 350kWh, resulting in a higher flat-rate tariff.
- Higher Consumption Households: For the larger part, clients on Home power tariffs, meant for middle- and higher-income customers with credit or smart meters, will experience variations in their increases. For example, a consumer whose consumption is 450kWh per month will witness his bills rising from R1,269 to R1,430-an increase of R161. Another similar case is that of a customer using 600kWh per month, with his bill increasing from R1,692 to over R1,900.
Reasons For Increases
It has been highlighted in the applications for tariff adjustments by Eskom, with tariff offsets aimed at cost recovery for infrastructure maintenance, debt services, and operational expenditures. Eskom intended a 36% increase for 2025/26 financial year; however, NERSA granted a 12.7% increase. The decision brings a compromise between the financial needs of Eskom and the economic impact on consumers.
Response Of Consumers And Recommendations
Approved tariff hikes have therefore stirred up worries amongst consumers, in particular low-income households, over the affordability of electricity. Energy experts recommend that consumers adopt energy-saving practices to cushion themselves against spiraling costs. Such energy efficiency measures include using energy-saving appliances, off-peak consumption, and alternative forms of energy where it is possible to do so.
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