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South Africans Brace for a Shocking Electricity Price Hike in April 2025
South African households are set to feel the financial strain as Eskom increases electricity prices by 12.7% from April 1, 2025. This comes after the National Energy Regulator of South Africa (Nersa) approved the hike, along with a controversial restructuring of Eskom’s tariffs that introduces fixed network charges.
Independent energy analyst Pieter Jordaan has warned that the changes will hit lower-consumption households the hardest, while some higher-usage customers may actually see a slight reduction in costs. Here’s what you need to know.
What’s Changing?
Two major shifts will affect electricity bills:
-
The 12.7% Tariff Increase
- Nersa approved Eskom’s request for a 12.7% price hike for 2025/26, meaning South Africans will pay significantly more for power.
-
Fixed Network Charges
- Eskom will introduce fixed monthly fees to cover transmission, distribution, and administrative costs.
- This affects all customers, including those using alternative energy sources like solar but still connected to the grid.
Additionally, a possible VAT increase—if announced by National Treasury in the 2025 Budget—could push prices even higher.
Why Are Fixed Charges Being Introduced?
Eskom argues that as wealthier households shift to solar and reduce their grid consumption, the company loses premium revenue that was used to subsidize lower-income customers. To recover losses, Eskom is restructuring its pricing model, effectively spreading costs across all users.
How Much Will You Pay?
The new pricing structure varies depending on electricity usage. Below is a breakdown of estimated monthly costs for different household categories.
Low Usage (300 kWh per month)
| Plan | 2024/25 Cost | 2025/26 Cost | Increase | % Change |
|---|---|---|---|---|
| HomePower 1 | R1,215 | R1,410 | +R195 | +16% |
| HomePower 2 | R1,537 | R1,830 | +R290 | +19% |
| HomePower 3 | R2,270 | R2,770 | +R500 | +22% |
| HomePower 4 | R1,072 | R1,250 | +R180 | +16% |
| HomeLight 20 | R656 | R750 | +R95 | +14% |
| HomeLight 60 | R801 | R950 | +R150 | +18% |
Medium Usage (600 kWh per month)
| Plan | 2024/25 Cost | 2025/26 Cost | Increase | % Change |
|---|---|---|---|---|
| HomePower 1 | R2,062 | R2,290 | +R230 | +11% |
| HomePower 2 | R2,384 | R2,720 | +R340 | +14% |
| HomePower 3 | R3,117 | R3,650 | +R530 | +17% |
| HomePower 4 | R1,919 | R2,130 | +R210 | +11% |
| HomeLight 20 | R1,386 | R1,500 | +R115 | +8% |
| HomeLight 60 | R1,603 | R1,890 | +R290 | +18% |
High Usage (900 kWh per month)
| Plan | 2024/25 Cost | 2025/26 Cost | Increase/Decrease | % Change |
|---|---|---|---|---|
| HomePower 1 | R3,400 | R3,200 | -R200 | -6% |
| HomePower 2 | R3,688 | R3,610 | -R80 | -2% |
| HomePower 3 | R4,421 | R4,550 | +R130 | +3% |
| HomePower 4 | R3,281 | R3,050 | -R230 | -7% |
| HomeLight 20 | R2,130 | R2,240 | +R110 | +5% |
| HomeLight 60 | R2,965 | R2,850 | -R115 | -4% |
Who Will Be Affected the Most?
- Lower-income households and low electricity users will bear the brunt of the price increase due to the higher impact of fixed charges.
- High-energy users (900 kWh/month or more) may experience slight price decreases, depending on their tariff plan.
- Solar users still connected to Eskom’s grid will also face new fixed costs.
A Gradual but Costly Transition
Originally, Eskom proposed doubling or tripling fixed charges immediately, leading to tariff increases of up to 68% for some consumers. However, Nersa approved a phased approach over three years:
- 2025: Only 20% of Eskom’s requested fixed fee increase will be applied.
- 2026: 30% more will be added.
- 2027: The remaining 30% will be implemented.
Despite this gradual rollout, South Africans will still see their electricity costs rising steadily each year.
With the 12.7% price hike, new fixed charges, and potential VAT increases, South Africans need to prepare for significantly higher electricity bills from April 2025. Households consuming less energy may feel the most financial strain, while those with higher usage might see minimal increases or even slight reductions.
To mitigate costs, consumers can:
- Explore energy-efficient appliances.
- Reduce consumption where possible.
- Consider battery storage options to limit Eskom reliance.
With rising energy prices becoming a long-term reality, planning ahead is crucial. Stay informed and track your electricity usage carefully to avoid bill shock in the coming months.
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