South Africans are bracing themselves for yet another financial blow as the National Energy Regulator of South Africa (NERSA) has approved a 12.74% Eskom Electricity Tariff Increase, set to take effect from 1 April 2025. Unfortunately, this is not an April Fool’s joke—it is a harsh reality that will further squeeze already struggling households and businesses.
This increase is part of a multi-year pricing determination (MYPD6), which includes a 5.36% increase in 2026 and a 6.19% increase in 2027. While these hikes are lower than the 36% Eskom initially applied for, they are still well above the current inflation rate of 3%, making electricity even more expensive for ordinary citizens.
How Much More Will You Pay?
With a 12.74% Eskom Electricity Tariff Increase, electricity bills will rise substantially, affecting both households and businesses. To put this into perspective:
- If you currently pay R1,000 per month for electricity, your new bill from April 2025 will be approximately R1,127.
- A household spending R2,500 per month will now need to budget for R2,818.
- Businesses that consume R10,000 worth of electricity monthly will now fork out R11,274.
For those already struggling with high living costs, this Eskom Electricity Tariff Increase is yet another burden in an economy where fuel, food, and other essential services continue to rise in price.
Public Concerns and Reactions
The decision has sparked outrage across South Africa, with many questioning how consumers can be expected to pay more for a service that is unreliable and frequently disrupted by load shedding.
1. The Democratic Alliance (DA) Opposes the Increase
The Democratic Alliance (DA) has strongly rejected the new Eskom Electricity Tariff Increase, arguing that:
- The 12.74% increase is three times higher than inflation.
- It will place an enormous financial strain on businesses and households.
- Eskom’s financial problems should not be passed onto the public, especially given its history of mismanagement and corruption.
The DA has also launched a national petition, which has already gathered over 130,000 signatures, calling for the reversal of Eskom’s price hikes.
2. South Africans Say Enough is Enough
Ordinary citizens have expressed their frustration on social media, with many asking why they should pay more for poor service. Many South Africans are still facing daily load shedding, and there is little confidence that Eskom will improve reliability despite the tariff hikes.
3. Businesses Fear Higher Operating Costs
Small businesses, which are already struggling with high costs and low consumer spending, have raised concerns that this Eskom Electricity Tariff Increase could push them over the edge. Many businesses rely on generators due to Eskom’s unreliability, and the combination of higher fuel and electricity costs could mean closures and job losses.
Why Is Eskom Increasing Tariffs?
According to NERSA, the Eskom Electricity Tariff Increase was necessary to cover Eskom’s revenue shortfall, which was created by years of poor financial management, theft, and corruption. The regulator has approved:
- R384 billion in allowable revenue for 2025/26
- R409 billion in 2026/27
- R435 billion in 2027/28
However, Eskom’s justification for the increases has not convinced the public, as power cuts and inefficiencies remain major problems.
Related: How to Submit Your Own Electricity Meter Reading for Accurate Billing
How Can You Reduce Your Electricity Bill?
With electricity prices set to rise, South Africans must find ways to cut their power consumption to keep costs down. Here are some practical tips:
1. Switch to Energy-Efficient Appliances
- Use LED light bulbs instead of incandescent bulbs.
- Buy energy-efficient appliances that consume less electricity.
- Turn off unused appliances instead of leaving them on standby.
2. Install a Solar Power System
- While solar energy requires an upfront investment, it can drastically reduce your reliance on Eskom.
- Consider installing solar panels or battery backup systems to cut long-term costs.
3. Reduce Peak-Time Electricity Usage
- Eskom charges higher rates during peak hours (early mornings and evenings).
- Shift high-energy tasks (like laundry and cooking) to off-peak hours to save money.
4. Consider Alternative Energy Sources
- Gas stoves and heaters can help reduce electricity use in your home.
- Inverters and battery systems provide backup power during load shedding.
Related: Reserve Bank Cuts Repo Rate to 7.5% – What It Means for You
Will Eskom Ever Stabilize?
Eskom has promised improvements in its power generation and infrastructure, but South Africans remain skeptical. Despite billions of rands being allocated to Eskom over the years, load shedding persists, and the state utility continues to request more financial aid and higher tariffs.
With a general election in 2024, Eskom’s performance and its impact on ordinary citizens will be a key political issue. The government will have to answer tough questions about its handling of the energy crisis.
What Lies Ahead?
With the Eskom Electricity Tariff Increase taking effect in April 2025, South Africans face an even tougher financial future. Whether Eskom can improve its efficiency, reduce power cuts, and stabilize its operations remains to be seen.
For now, consumers must prepare for higher bills, find ways to cut electricity use, and demand accountability from Eskom and the government.