Electricity tariffs in South Africa can be complex, but understanding how they work is essential for households and businesses to manage their electricity costs effectively. With the latest tariff adjustments approved by the National Energy Regulator of South Africa (NERSA) for the 2024/2025 financial year, consumers should be aware of how these changes impact their electricity bills.
This article explains how Eskom’s tariffs function and what the latest increases mean for different consumer categories.
How Electricity Tariffs Work
Eskom’s electricity tariffs are structured based on customer categories and energy consumption. The pricing is determined by NERSA and accounts for factors such as:
- The cost of generating electricity
- Transmission and distribution costs
- Municipal mark-ups (for local authority customers)
- Government subsidies for affordability
Tariffs vary between Eskom direct customers and those supplied by municipalities. Direct customers receive electricity directly from Eskom, while municipal customers receive electricity via their local municipalities, which then set their own tariffs based on Eskom’s bulk supply pricing.
2024/2025 Eskom Tariff Increases
NERSA has approved the following tariff increases for the 2024/2025 period:
| Customer Category | Percentage Increase |
|---|---|
| Local authority tariff charges (1 July 2024 – 30 June 2025) | 12.72% |
| Eskom direct customers (1 April 2024 – 31 March 2025) | 12.74% |
| Homelight 20A | 12.74% |
| Affordability subsidy charge | 25.24% |
Key Takeaways from the 2024/2025 Tariff Adjustments
- The general tariff increase for Eskom direct customers is 12.74%.
- Local authority customers will see an increase of 12.72%.
- The affordability subsidy charge, which is aimed at supporting low-income households, has increased significantly by 25.24%.
- There are no structural changes to the tariff system for 2024/2025.
Understanding Different Eskom Tariffs
1. Homelight Tariffs (For Residential Customers)
The Homelight tariff is designed for low-energy-consuming households, typically with prepaid meters. The increase in Homelight 20A means that customers in this category will see a 12.74% rise in their electricity costs.
2. Business and Large Power Users
For commercial and industrial consumers, tariffs vary depending on:
- The size of their energy demand (measured in kVA or kW)
- The time of use (peak vs off-peak hours)
- Whether they receive direct Eskom supply or municipal supply
3. Affordability Subsidy Charge
This charge is applied to certain tariffs to help fund subsidized electricity access for indigent households. The significant 25.24% increase means businesses and high-consumption households will contribute more to subsidizing lower-income customers.
How to Calculate Your Eskom Bill
Consumers can use Eskom’s tariff calculator tools to estimate their electricity costs under the new tariff structure. These tools are only applicable to Eskom direct customers and help consumers understand their specific charges.
Available Tariff Calculation Tools
- Small Power User (SPU) Tariff Comparison Tool: Helps small businesses and homeowners compare costs.
- Large Power User (LPU) Tariff Comparison Tool: Designed for industrial and large-scale electricity consumers.
- Residential Token Purchase Tool: Assists prepaid customers in determining token costs.
- Notified Maximum Demand (NMD) Tool: Helps businesses manage their maximum demand limits to avoid penalties.
How to Reduce Your Electricity Costs
With the rising costs of electricity, consumers should consider the following energy-saving strategies:
- Monitor Usage: Track electricity consumption using prepaid meters or smart meters.
- Switch to Energy-Efficient Appliances: Invest in LED lighting, solar water heaters, and energy-efficient appliances.
- Optimize Time-of-Use: Businesses should operate during off-peak hours to benefit from lower tariffs.
- Consider Solar and Alternative Energy Solutions: Installing solar panels can help reduce reliance on Eskom.
- Apply for Rebates or Subsidies: Certain Eskom programs offer incentives for using energy-efficient solutions.
Check also: Eskom Calls for Review of Free Basic Electricity Grant to Better Serve Low-income Households
The Eskom electricity tariff increases for 2024/2025 will impact all consumers, with an average increase of 12.74% for most direct customers and 12.72% for municipal customers. The affordability subsidy charge has seen the highest increase at 25.24%, which will affect businesses and high-consumption users more significantly.
Consumers should take advantage of Eskom’s tariff calculator tools and implement energy-saving measures to mitigate rising costs. Understanding how these tariffs work is essential for budgeting and ensuring efficient electricity usage in households and businesses across South Africa.
