Electricity Lifeline Tariff – In a drastic move that is set to affect millions of low-income households, the South African government has officially removed the Electricity Lifeline Tariff from 10 July 2025. This special subsidized tariff was previously offered to indigent households using limited electricity, ensuring affordability for the poorest communities. However, the recent announcement has sparked public outrage and fear, especially among SASSA grant recipients and other low-income families already battling rising living costs. The decision comes in the wake of Eskom’s ongoing financial troubles and pressure to make the national electricity system more “cost-reflective.” This means every household—regardless of income—will now pay the full standard tariff for electricity. Previously, lifeline users benefited from heavily discounted rates on their first 350-450 kWh per month. For many, this change could mean paying nearly double or even triple their usual monthly electricity costs. Activists argue that the timing couldn’t be worse. With electricity already increased by 18% across major metros from 10 July 2025, and water and utility bills also going up, removing the lifeline rate has left vulnerable South Africans even more financially exposed. The move has been labelled as regressive, unfair, and a direct attack on the poor. This article outlines who will be affected, how much more people can expect to pay, what alternatives are being proposed, and how to calculate your new bill after the lifeline tariff removal.
What Was the Electricity Lifeline Tariff and Why Was It Important?
The lifeline tariff was a financial cushion for low-usage households. Here’s how it helped:
- Provided subsidized rates to households using below 350–450 kWh/month.
- Designed for families with no or low income, often tied to municipal indigent registers.
- Tariffs were almost 40% lower than the standard residential rate.
- Helped SASSA beneficiaries and informal households manage monthly budgets.
- Was considered a social protection tool for energy poverty.
Without it, many households will now face significantly higher monthly electricity bills.
Key Differences: Electricity Lifeline Tariff vs. New Tariff Rates
The following table shows a clear comparison of the old lifeline tariff versus the new standard tariff:
Category | Lifeline Tariff (Before July 2025) | Standard Tariff (After July 2025) | % Increase |
---|---|---|---|
First 50 kWh | R1.10 per kWh | R2.80 per kWh | 154% |
Next 100 kWh | R1.50 per kWh | R2.85 per kWh | 90% |
150-350 kWh | R1.80 per kWh | R3.10 per kWh | 72% |
Fixed monthly charge | R0 | R218 | — |
Surcharge (network fees) | R0 | R75 | — |
Total for 300 kWh/month | Approx. R420 | Approx. R955 | 127% |
Beneficiary group | Registered indigent households | All customers | — |
Who Is Affected Most by This Removal?
The lifeline cut-off has a ripple effect on millions across the country. Here’s who it hurts the most:
- SASSA grant beneficiaries relying on R2 330 or less per month.
- Pensioners with fixed income and low consumption.
- Unemployed and informal sector households.
- Rural and township families with limited electricity usage.
- Single-parent homes already struggling with food and rent costs.
Estimated Additional Monthly Cost for Different Usage Levels
This table shows how different households will feel the impact depending on usage:
Monthly Usage (kWh) | Old Lifeline Cost | New Tariff Cost | Extra Monthly Cost |
---|---|---|---|
150 kWh | R250 | R530 | R280 |
200 kWh | R330 | R640 | R310 |
250 kWh | R390 | R760 | R370 |
300 kWh | R420 | R955 | R535 |
350 kWh | R450 | R1 075 | R625 |
400 kWh | R520 | R1 230 | R710 |
450 kWh | R585 | R1 385 | R800 |
What Has Government and Eskom Said?
Eskom and the Department of Mineral Resources and Energy (DMRE) defend the move as a step toward “cost-reflective pricing.” They argue:
- Lifeline tariffs were not sustainable due to Eskom’s R400 billion debt.
- All customers must now “pay their fair share.”
- Municipalities were abusing the lifeline register by not regularly updating income records.
- Funds saved from lifeline subsidies will be redirected to infrastructure and load-shedding reduction.
But Critics Say It’s a Disaster for the Poor
Public interest groups and unions have slammed the decision:
- No proper consultation with affected communities.
- Will force families to choose between electricity and food.
- Worsens inequality in already poor areas.
- Could push more households into illegal connections and non-payment.
- No alternative support like electricity vouchers or expanded free basic services announced.
Can You Still Apply for Free Basic Electricity?
Some municipalities still offer limited Free Basic Electricity (FBE), but the rules are strict:
- Must be on the indigent register of your local municipality.
- Usually offers 50–60 kWh/month free.
- Applies only to prepaid meters.
- Income verification often required.
- Needs yearly re-registration or status verification.
Municipalities Still Offering FBE (As of July 2025)
Municipality | Monthly FBE Units | Prepaid Required | Registration Needed |
---|---|---|---|
City of Cape Town | 60 kWh | Yes | Yes |
eThekwini Metro | 50 kWh | Yes | Yes |
Nelson Mandela Bay | 60 kWh | Yes | Yes |
Johannesburg Metro | 50 kWh | Yes | Yes |
Buffalo City | 50 kWh | Yes | Yes |
Tshwane Metro | 60 kWh | Yes | Yes |
Mangaung | 50 kWh | Yes | Yes |
What Can Low-Income Families Do Now?
Households need to act quickly to avoid huge shocks on their next electricity bill:
- Register or update indigent status at your municipality.
- Apply for Free Basic Electricity if available.
- Limit usage to essential appliances only.
- Switch to prepaid meters if not already installed.
- Use energy-saving bulbs, cook during off-peak hours.
- Consider solar geysers or battery-based lights for evening use.
How to Register as Indigent: Required Documents
To apply for indigent status, prepare the following:
- Certified copy of South African ID.
- Proof of residence (utility bill, affidavit, or lease).
- Bank statement or SASSA card showing income.
- Affidavit declaring unemployment or low income.
- Completed indigent application form from the municipality.
What Is the Future of Electricity Pricing?
Analysts warn that this is just the beginning of broader energy pricing reform:
- NERSA (National Energy Regulator) may approve further increases in 2026.
- Eskom is under pressure to unbundle and privatize certain functions.
- More municipalities may move to prepaid-only models.
- Smart meters and time-of-use pricing may become compulsory.
- Energy poverty could worsen unless balanced by social grants or new subsidies.
Possible Government Interventions Still Under Review
Government is said to be considering alternatives, but no formal announcements have been made. Options being discussed include:
- R300–R500 monthly electricity vouchers for SASSA beneficiaries.
- Expanded FBE coverage to cover up to 100 kWh/month.
- A new “Energy Relief Grant” similar to SRD R370.
- Lower tariffs for households with children or elderly members.
This change marks a turning point in South Africa’s energy policy. While the government defends it as a financially necessary move, the burden it places on the country’s poorest households is undeniable. With cost-of-living pressures mounting, the removal of lifeline tariffs may trigger social unrest, wider non-payment issues, and further calls for a restructured, people-focused electricity model in the months ahead.
FAQs: Electricity Lifeline Tariff Removal
Q1: When does the removal take effect?
A: The change is effective from 10 July 2025 across all municipalities.
Q2: Will I automatically be moved to the new rate?
A: Yes. All users previously on lifeline tariffs are now charged standard tariffs unless reclassified under FBE or indigent schemes.
Q3: Can I still get discounted electricity somehow?
A: You may still qualify for Free Basic Electricity if your municipality offers it and you’re registered as indigent.
Q4: How can I check my status?
A: Visit your local municipal office or its website. Many offer online portals to check your FBE or indigent status.
Q5: Are there any legal actions or protests planned?
A: Civil society groups are planning court challenges and community protests in July and August 2025.
Q6: Will this affect prepaid and postpaid users equally?
A: Yes. Both prepaid and postpaid users will pay the new higher tariffs unless exempted through municipal indigent status.
Q7: Is it still worth using prepaid electricity?
A: Prepaid gives better control, but without lifeline rates, the savings are less significant than before.