Prepaid Tariff – Starting 10 July 2025, Eskom has implemented a significant price hike in prepaid electricity tariffs, with rates now crossing the R3 per unit mark in some provinces. This steep increase comes as part of the utility’s broader tariff adjustment strategy approved by NERSA (National Energy Regulator of South Africa), affecting both urban and rural prepaid users across the country. The decision has sparked concern among low- and middle-income households already grappling with high food prices, fuel hikes, and water rate increases. Previously, many prepaid customers were paying between R2.20 and R2.80 per kWh depending on their location and consumption bracket. With this latest increase, however, several areas are now reporting base prepaid rates of R3.01 and higher. The impact is particularly harsh on homes that rely entirely on prepaid meters, which often come with inclining block tariffs — meaning the more units consumed, the more expensive each unit becomes. This article will walk you through everything you need to know about Eskom’s latest prepaid tariff structure: who it affects, which areas are most impacted, the breakdown of charges, alternative lifeline options, and what consumers can do to reduce their electricity expenses under the new pricing system.
What Are the New Prepaid Electricity Rates From 10 July 2025?
Eskom’s new prepaid tariffs have varied slightly by region, with some municipalities also applying surcharges. The base rate for prepaid users in many zones now starts at over R3/unit. Here’s a breakdown:
- Rates increased in both urban and rural regions
- New tariffs apply to all residential prepaid users on Eskom direct supply
- NERSA approved increases averaging 12.74% for 2025/26
- Lifeline tariffs under Free Basic Electricity (FBE) still apply, but only for qualifying low-income users
- High-consumption households will face steeper per-unit costs due to block tariffs
Eskom Prepaid Unit Price Comparison by Province
| Province | Previous Price (per unit) | New Price (per unit) | % Increase | Lifeline Support Available? |
|---|---|---|---|---|
| Gauteng | R2.76 | R3.08 | 11.6% | Yes |
| Western Cape | R2.82 | R3.14 | 11.3% | Yes |
| Eastern Cape | R2.67 | R3.02 | 13.1% | Yes |
| KwaZulu-Natal | R2.74 | R3.05 | 11.3% | Yes |
| Limpopo | R2.58 | R3.01 | 16.7% | Yes |
| Mpumalanga | R2.62 | R3.03 | 15.6% | Yes |
| North West | R2.65 | R3.00 | 13.2% | Yes |
| Free State | R2.70 | R3.04 | 12.6% | Yes |
Prepaid Tariff – How the Prepaid Block Tariff System Works
Eskom uses a block tariff system for prepaid users where the rate increases as you consume more units. This encourages energy conservation but hits large households harder.
- Block 1 (0–350 kWh): ~R3.01/unit
- Block 2 (351–600 kWh): ~R3.39/unit
- Block 3 (601+ kWh): ~R3.71/unit
- Units reset every billing month
- Blocks are calculated based on the monthly total usage, not daily
Monthly Estimated Costs Under New Tariffs
| Monthly Usage (kWh) | Approximate Cost (July 2025) | Comparison (May 2025) |
|---|---|---|
| 100 kWh | R301 | R276 |
| 300 kWh | R936 | R828 |
| 500 kWh | R1,738 | R1,562 |
| 700 kWh | R2,580 | R2,296 |
Who Will Be Most Affected by These New Prepaid Tariff?
Households in the lower- and middle-income brackets will be hit hardest by these tariff changes, especially those in informal or rural settlements that rely on Eskom-supplied prepaid meters.
- Large families with high usage
- Households using prepaid geysers, heaters, or stoves
- Consumers unaware of block increases
- Tenants with single meters for shared homes
- Low-income homes that don’t qualify for indigent support
Are Indigent Households Protected from Increases?
Municipal indigent registers still provide access to Free Basic Electricity (FBE), which gives qualifying users:
- 50–60 kWh of free electricity monthly
- Preferential rates on the first block
- Waiver of connection or service charges
- But not all eligible residents are registered
How to Check If You’re Registered for FBE
To confirm FBE status:
- Visit your local municipal office
- Present ID, proof of address, and income
- Registration is usually valid for 12 months
- Check your meter: FBE credit reflects at start of each month
What Are Eskom and Municipalities Saying About the Increase?
Eskom and NERSA argue that the increase was essential for infrastructure upgrades, debt servicing, and sustainability. Municipalities meanwhile point out they’re passing along the approved hikes with minimal markup.
- NERSA approved an average 12.74% increase for 2025/26
- Eskom says increases are based on operational deficits
- Municipalities only add standard surcharges where applicable
- No new fixed charges for prepaid, unlike conventional billing
- Infrastructure recovery projects cited as key driver
What Customers Can Do to Save Electricity Now
To reduce electricity costs under the new tariff:
- Avoid usage above 350 kWh/month if possible
- Use solar-powered geysers or stoves where feasible
- Unplug appliances not in use
- Buy units in bulk early in the month before block rises
- Switch to LED bulbs and low-energy appliances
Sample Monthly Budget Breakdown Under New Prepaid Rates
| Household Size | Monthly Units Used | Estimated Monthly Spend | Notes |
|---|---|---|---|
| Single Person | 150 kWh | R451 | Can remain in Block 1 |
| Small Family | 350 kWh | R1,052 | Starts entering Block 2 |
| Medium Family | 500 kWh | R1,738 | Fully crosses Block 2 |
| Large Family | 700 kWh | R2,580 | Mostly in Block 3 |
What Happens If You Can’t Afford These New Tariffs?
Many families are already struggling with food and rent. This tariff hike could push them over the edge.
- Households may have to reduce energy consumption drastically
- Falling behind on rent due to utility budgeting
- Possible increase in illegal connections or unsafe alternatives
- Calls rising for expanded Free Basic Electricity access
How to Apply for Indigent or Subsidised Electricity Support
To apply:
- Visit your municipal customer care centre
- Bring ID, proof of residence, and income statement
- Submit application under Indigent Policy
- Processing time: 7–14 working days
What Are Your Legal Rights as a Prepaid Customer?
Even under prepaid systems, consumers have protections:
- You must receive a VAT-inclusive pricing receipt
- Pricing per unit must be clearly displayed before purchase
- Complaints can be filed to Eskom or local ombudsman
- NERSA accepts formal complaints regarding unfair pricing
How to File a Complaint with NERSA or Eskom
If you believe you’ve been unfairly charged:
- Contact Eskom Customer Service: 08600 37566
- Email NERSA complaints to: [email protected]
- Keep proof of unit purchases and error messages
- Use municipal platforms if electricity is supplied indirectly
Quick Summary of Eskom Prepaid July 2025 Changes
| Item | Details |
|---|---|
| New Base Rate | R3.01–R3.14/unit (Block 1) |
| Highest Block Rate | R3.71+/unit (Block 3) |
| Free Basic Electricity | 50–60 units/month (for qualifying) |
| Tariff Effective Date | 10 July 2025 |
| Approved By | NERSA |
| Eskom Contact Number | 08600 37566 |
| Indigent Registration | Through local municipality |
| Regions Affected | All provinces under Eskom supply |
Eskom’s new prepaid tariff hike is a hard blow to many South African households, especially those already stretched by rising municipal and fuel costs. With some regions now paying over R3 per unit, electricity budgeting has become more critical than ever. Consumers are urged to monitor their usage closely, take advantage of FBE where available, and contact their local municipality for support programs. While the increase may have been deemed necessary by Eskom and NERSA, its real-life impact on vulnerable households could be severe if no mitigating support is offered.
FAQs on Eskom’s New Prepaid Tariffs – July 2025
Q1: Why did Eskom increase the prepaid tariff above R3/unit?
A: The increase is part of the annual NERSA-approved adjustment to meet operational and infrastructure costs.
Q2: Does this tariff apply to everyone?
A: It applies to all Eskom-supplied prepaid users. Municipal users may see slight variations.
Q3: Can I still get Free Basic Electricity?
A: Yes, but only if you’re registered as indigent through your municipality.
Q4: Can buying more units at once help me save money?
A: Yes, buying early in the month before usage crosses to higher blocks can help reduce costs.
Q5: Will there be another increase soon?
A: Not until the next annual NERSA adjustment, expected in July 2026.