The fine print behind Eskom’s 8.76% hike that could cost some households 28% more

When the National Energy Regulator of South Africa (Nersa) announced that it had approved an average electricity tariff increase of 8.76% for Eskom Direct customers from 1 April 2026, many South Africans breathed a cautious sigh of relief.

Under 10%? In this economy? That didn’t sound catastrophic.

But buried in the detail of Eskom’s new retail tariff structure is a far steeper reality, especially for smaller households and rooftop solar users. For many residential customers, fixed charges alone are set to jump by about 28%.

And that’s before you’ve even switched on the kettle.

The shift from units to fixed fees

The changes form part of the second phase of Eskom’s retail tariff plan (RTP), which has been years in the making.

In simple terms, Eskom is restructuring how it recovers its revenue. Instead of relying heavily on the price per kilowatt-hour (kWh) consumed, the utility is increasing the fixed charges customers must pay simply to remain connected to the grid.

That means whether you use a lot of electricity or barely any, you’ll still pay more upfront each month.

Eskom argues that low-usage customers are currently being subsidised by high-usage ones. Critics, however, say this new structure is designed to cushion Eskom from declining electricity sales as more households install rooftop solar.

Who will feel it most?

Most non-indigent residential customers are on Eskom’s Homepower or Homeflex tariffs. The majority of households have single-phase connections, placing them in the Homepower 4 or Homeflex 4 categories.

Here’s where the impact becomes clearer.

From 1 April 2026:

• The generation capacity charge (fixed portion) for Homepower/Homeflex 4 rises from 54 cents to 82 cents per day about R24.60 over a 30-day month.

• The service and administration fee currently R112.80 over 30 days is set to increase dramatically over the next phase, climbing to R198 in the following financial year.

• The network capacity charge increases from R288 to R313.20 per month.

When combined, the total fixed monthly fees for these customers will rise from R417 to R535.80 a 28% increase.

Meanwhile, variable energy charges (the per-unit costs) will rise by between 4.5% and 5.4%, depending on the season and time of use.

So while Eskom’s average increase sits at 8.76%, the reality for many households looks very different.

A particular blow to solar users

There’s another twist.

Under Eskom’s small-scale embedded generation rules, households with grid-tied or hybrid solar systems must be on the Homeflex tariff, which uses time-of-use pricing.

Homeflex customers are charged differently depending on whether electricity is consumed during off-peak, standard, or peak hours, and rates differ between high-demand (June–August) and low-demand seasons.

Notably, Eskom is implementing higher increases on off-peak energy the very periods when many solar users draw from the grid after shifting consumption to save money.

This has fuelled criticism online, with some homeowners arguing that they invested in solar specifically to reduce grid dependence only to now face higher fixed connection costs.

On social media platforms and community forums, the reaction has been blunt: “We’re being punished for using less,” one user wrote. Others argue that maintaining the grid infrastructure costs money, regardless of how much electricity you consume.

A pattern already seen

This isn’t the first phase of the RTP to cause shockwaves.

Last year, after the first phase was implemented, the Electricity Resellers Association of South Africa reported that some sectional-title residents saw electricity bills jump by as much as 30%. That was despite Eskom’s average increase at the time being 12.74%.

For many middle-income households already squeezed by rising food, fuel and municipal rates, electricity has become one of the fastest-growing monthly expenses.

Why Eskom says it’s necessary

Eskom maintains that shifting more revenue recovery into fixed charges is fairer and more sustainable.

From the utility’s perspective, the cost of maintaining transmission lines, substations, and infrastructure does not disappear simply because customers use less electricity. As self-generation grows, especially in suburbs with high rooftop solar penetration, electricity sales volumes decline but grid maintenance costs remain.

Recovering more revenue through fixed charges stabilises Eskom’s income, insulating it from falling demand.

Critics counter that the approach disproportionately affects low-to-moderate consumption households, including pensioners and small families who actively try to conserve electricity.

The broader energy crossroads

South Africa’s energy landscape is changing. Load shedding has eased compared to peak crisis years, but households have adapted, installing inverters, batteries, and solar panels.

Now, as the country transitions toward a more decentralised energy mix, tariff reform is exposing a deeper debate:

Should consumers be rewarded for reducing grid reliance or pay more simply to stay connected?

For now, the numbers are clear.

From April 2026, many Eskom Direct customers will pay significantly higher fixed fees, regardless of how carefully they manage their usage.

That 8.76% headline increase may be technically accurate.

But for thousands of households, the real figure will feel much closer to 28%.

{Source: My Broad Band}

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