The National Energy Regulator of South Africa (NERSA) has cleared a hike of 12.74% in electricity tariffs for direct Eskom customers. The decision will come into effect on 10 October 2025. At the same time, the municipalities which buy power from Eskom will bear a burden of 11.32% which is a bit lower than that for direct customers in their bulk purchase cost. All these changes are being made in the context of raising operational, infrastructure, and debt costs.
Tariff System with Structural Changes
The new tariff schedule is accompanied by a number of structural changes, among which are:
- Elimination of block tariffs: The two-tier pricing system, which at one time supported minor consumers, is being done away with, and everyone will now bear a flat rate per kWh irrespective of the amount of consumption that they have.
- Increased fixed charges: The monthly fixed charges for residential accounts will rise explosively—the fixed charge component for some units will go up by as much as 88%.
- Modified peak / off-peak times: Peak usage areas are being widened and off-peak rebates are either being cut down or totally cancelled. The Sunday evening discount period is the main one being dropped and is now classified under normal rates.
- Cross-subsidies are eliminated throughout consumption bands: The new pricing method abolishes the practice of transferring costs from high users to low users and thus increases the burden on low-use households.
Why October 2025 Marks a Turning Point
Even though a lot of changes in tariffs had been already approved in 2025, it was October 2025 when the full impact would be felt. By that time:
- Households will have to deal simultaneously with flat rate pricing, high fixed charges and wider pricing changes.
- Local governments may add surcharges or markups on top of the basic Eskom tariff, thus, increasing the bills for consumers even more.
- Besides, lots of households will be hit with a much sharper increase than they had expected, especially the ones in lower usage categories who used to be benefited from subsidized blocks.
Impacts on Households & Businesses
The tariff revision impacts households and businesses differently:
- Households with low consumption (like those using about 350 kWh or less a month) will probably face heavier price increases as their former subsidies are eliminated.
- Households with middle and high consumption might experience more stability in pricing but still, they will be affected by higher fixed charges or longer peak rates.
- Businesses and big consumers with negotiated contacts might experience less drastic, depending on their rate structures, peak demand usage, and bulk deals.
Relief measures like Free Basic Electricity and municipal support are expected to support more indigent households under the new rates than before.
How to React and Rescue
- To understand your status under the new pricing scheme, check your tariff plan (Homepower, Homeflex, etc.).
- If it is possible, shift the operation of power-consuming devices like washing machines or heaters to times when electricity is cheapest.
- Let your house consume less energy by putting up LED lights, enhancing insulation and cutting standby power use to the lowest level possible.
- Look into solar-battery systems particularly where grid connection is allowed and net metering as well as export of electricity policies are in effect.
- In case you qualify, apply for or retain your Free Basic Electricity or municipal indigent support status to lessen the impact of the price hike.
Also Read: South Africa Housing Support 2025: R2,000 Monthly Aid, Check Eligibility