South Africa will face a 12.7% electricity tariff increase from April 1, 2025, following approval by the National Energy Regulator of South Africa (NERSA).
This increase will impact households and businesses, raising concerns about affordability but also encouraging energy efficiency and renewable energy adoption.
Understanding how this hike affects you and how to manage rising electricity costs is crucial. This guide provides a breakdown of the tariff increase, its impact, and practical ways to reduce electricity expenses.
Overview of the Electricity Tariff Boosted
| Aspect | Details |
|---|---|
| Tariff Increase | 12.7% from April 1, 2025 |
| Future Increases | 5.36% in 2026/27, 6.19% in 2027/28 |
| Eskom’s Initial Request | 36% increase |
| Regulator Decision | NERSA approved a lower increase |
| Economic Context | Weak economy, cost-of-living crisis |
| Alternative Solutions | Renewable energy, energy efficiency measures |
| Official Source | NERSA Website |
While the approved 12.7% increase is significantly lower than Eskom’s requested 36%, it still adds financial pressure on consumers. However, strategic energy management can help offset rising costs.
Why Is Eskom Increasing Tariffs?
NERSA is responsible for regulating electricity prices in South Africa, balancing Eskom’s financial needs with affordability for consumers.
Eskom justified its initial 36% increase request due to:
- Rising operational costs – Fuel, maintenance, and labor costs have increased.
- Debt repayment – Eskom carries significant debt and needs more revenue.
- Infrastructure investment – Power plants, substations, and grid expansion require funding.
- Load shedding mitigation – Improving electricity reliability requires substantial investment.
NERSA approved a lower 12.7% increase to reduce the burden on consumers while ensuring Eskom remains financially stable.
How Will This Affect Consumers?
For Households
- Higher monthly electricity bills.
- Increased costs for heating, cooking, and daily appliances.
- Greater motivation to invest in energy-efficient appliances and solar power.
A 12.7% hike means that for every R1,000 spent on electricity, consumers will now pay an extra R127 from April 2025.
For Businesses
- Higher operational costs, especially for industries reliant on electricity.
- Potential price increases for goods and services.
- More incentives to switch to renewable energy sources such as solar and backup generators.
How to Reduce Electricity Costs
1. Cut Back on Electricity Use
Making small changes in energy use can significantly reduce monthly bills.
- Switch to LED lighting – Uses 80% less energy than traditional bulbs.
- Unplug unused devices – Appliances on standby still consume power.
- Use energy-efficient appliances – Look for Energy Star-rated devices.
- Install a geyser timer – Water heating accounts for a large portion of energy use.
2. Invest in Renewable Energy
With rising tariffs and ongoing load shedding, renewable energy is a cost-effective alternative.
- Solar panels – Reduce dependence on Eskom and provide long-term savings.
- Backup battery systems – Store energy for use during peak hours or power cuts.
- Wind energy – Suitable for areas with consistent wind speeds.
3. Manage Electricity Usage with Smart Tools
Using smart meters and energy tracking apps can help identify high-energy consumption areas.
- Eskom’s MyEskom App – Provides real-time energy usage data.
- Home energy monitors – Devices like Sense Energy Monitor track power usage.
4. Consider Alternative Tariff Plans
Eskom offers different tariff structures, including time-of-use tariffs, where electricity is cheaper during off-peak hours.
- Shift energy-intensive activities to non-peak times to save money.
- Businesses and high-consumption households can benefit from these cost-saving options.
The 12.7% electricity tariff increase from April 1, 2025, will add financial pressure on consumers, but strategic energy-saving measures can help reduce costs.
Investing in energy-efficient appliances, smart monitoring tools, and renewable energy will be key to managing rising electricity expenses.
For more details, visit the NERSA website or consult an energy expert to explore cost-saving solutions.
