Finance

South African Electricity Tariffs Going Up – Here’s What You Need to Know!

South African electricity tariffs will rise by 12.7% in 2025, affecting households and businesses. Learn why this increase is happening, how it will impact you, and what you can do to reduce your electricity bill. Discover energy-saving tips, solar power incentives, and the latest updates from NERSA and Eskom.

By Anjali Tamta
Published on
South African Electricity Tariffs Going Up
South African Electricity Tariffs Going Up

South African Electricity Tariffs Going Up: The cost of electricity in South Africa is set to rise again, affecting households and businesses alike. The National Energy Regulator of South Africa (NERSA) has approved a 12.7% tariff increase for 2025/26, followed by further hikes in subsequent years. But what does this mean for consumers? How can you prepare? This article breaks down everything you need to know.

South African Electricity Tariffs Going Up

TopicDetails
Electricity Tariff Increase12.7% for 2025/26
Eskom’s Requested Increase36% (but only 12.7% was approved)
Impact on ConsumersHigher monthly bills, increased costs for businesses
Reasons for the IncreaseRising coal prices, municipal debt, Eskom’s financial challenges
Government & Political ResponseOpposition from the Democratic Alliance (DA), calls for alternative energy solutions
What You Can DoEnergy-saving tips, solar power, budget adjustments
Official SourceNERSA Official Website

With South Africa’s electricity tariffs set to rise by 12.7% in 2025, both individuals and businesses must adapt. By embracing energy-efficient solutions, switching to solar power, and managing consumption smartly, you can minimize the impact of higher electricity costs.

Why Are Electricity Prices Going Up?

Eskom, South Africa’s state-owned electricity provider, has been struggling financially due to high operating costs, outdated infrastructure, and massive municipal debt. The utility originally requested a 36% increase, but NERSA only approved 12.7% for the upcoming year. Additional increases of 5.36% in 2026/27 and 6.19% in 2027/28 have also been approved.

The key reasons for these tariff hikes include:

  • Higher Coal Prices: Eskom relies heavily on coal-fired power stations, and coal costs have surged in recent years.
  • Municipal Debt: Many municipalities owe Eskom billions, impacting cash flow.
  • Aging Infrastructure: Eskom’s power plants need upgrades and maintenance, requiring significant funding.
  • Carbon Tax & Environmental Costs: With global pressure to shift toward cleaner energy, Eskom faces increasing costs due to environmental compliance.

How Will This Affect Consumers?

For households, a 12.7% increase means higher electricity bills. If you currently pay R1,000 per month, expect an increase of R127 starting April 1, 2025.

For businesses, especially those in manufacturing, retail, and hospitality, the rising tariffs will increase operational costs, leading to higher prices for goods and services.

Impact on Different Sectors:

  • Small Businesses: Higher costs may lead to reduced profit margins.
  • Manufacturing & Industry: Increased expenses in production processes.
  • Retail & Hospitality: Higher operational costs might be passed on to customers.
  • Households: Families need to rethink their electricity usage and budgets.

South African Electricity Tariffs Going Up Reduce Your Electricity Bill

With electricity costs rising, it’s essential to adopt energy-efficient habits. Here are some practical ways to reduce your electricity usage and costs:

1. Switch to Energy-Efficient Appliances

  • Use LED bulbs instead of incandescent lights.
  • Buy energy-efficient refrigerators, washing machines, and geysers.
  • Consider an energy-saving stove or air fryer for cooking.

2. Unplug Unused Devices

  • Appliances like TVs, microwaves, and chargers still use electricity when plugged in.
  • Use a power strip to switch off multiple devices at once.

3. Use Solar Power

  • Installing solar panels can significantly reduce reliance on Eskom.
  • Government incentives are available for solar installations—check with your municipality.

4. Optimize Geyser Use

  • Set your geyser to 55°C instead of 70°C.
  • Use a geyser blanket to retain heat.
  • Consider solar water heaters.

5. Reduce Heating & Cooling Costs

  • Use ceiling insulation to maintain indoor temperatures.
  • Invest in energy-efficient air conditioners or use fans instead of heaters.

6. Time Your Electricity Use Wisely

  • Run washing machines and dishwashers during off-peak hours.
  • Use timers for pool pumps and irrigation systems.

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Political & Public Reactions

Government’s Response

The South African government acknowledges the challenges Eskom faces but emphasizes the need for alternative energy solutions like renewables. Some relief measures are being considered, but none have been officially implemented yet.

Opposition from the Democratic Alliance (DA)

The DA has rejected NERSA’s decision, stating that the public shouldn’t have to bear the costs of Eskom’s mismanagement. They have vowed to challenge the increase through legal means and parliamentary processes.

FAQs On South African Electricity Tariffs Going Up

1. When will the electricity price increase take effect?

The 12.7% increase will take effect on April 1, 2025.

2. Why did Eskom request a 36% increase?

Eskom needed additional funding due to high coal prices, maintenance costs, and unpaid municipal debts.

3. Will electricity prices go up again in 2026?

Yes. NERSA has approved further increases of 5.36% in 2026/27 and 6.19% in 2027/28.

4. How can I check my new electricity rates?

Visit the NERSA website or contact your local municipality for updated tariffs.

5. Are there any government subsidies for solar energy?

Yes. Some municipalities offer rebates and incentives for installing solar panels and energy-efficient systems.

Author
Anjali Tamta
Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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