Electricity Tariff Hike – From August 1, South Africans are bracing for another round of electricity tariff hikes as confirmed by national and provincial regulators. Eskom and municipal providers have already outlined the new unit charges, and households across provinces will now face increased monthly electricity bills. This tariff hike has caused concern among many citizens, especially those already struggling with the cost of living. While the reasons behind the hike are rooted in operational costs, load shedding management, and infrastructure upgrades, the impact will be directly felt in every home and business. The National Energy Regulator of South Africa (NERSA) recently approved the implementation of revised tariffs by Eskom and municipalities, taking effect from August 1, 2025. The adjustment includes both fixed monthly charges and per unit (kWh) consumption rates. Households using pre-paid meters, post-paid meters, and businesses will all see varying changes depending on consumption slabs and provincial frameworks. Let’s break down what these new tariffs mean, how much more you’ll be paying, and what measures you can consider to manage your electricity consumption better.
Electricity Tariff Hike by Province: How Much Will You Pay?
The new electricity tariffs vary by province and municipality. Most households will pay an increased rate per unit, with higher increases seen in urban centers and metros.
- Eskom has applied an average increase of 12.74% for the 2025/2026 year.
- Municipalities may have slight variations based on local costs and service upgrades.
- The more electricity you use, the higher the per-unit cost bracket becomes.
Here is a province-wise breakdown:
| Province | Old Rate (per unit) | New Rate from Aug 1 | Avg Monthly Increase | Tariff Type |
|---|---|---|---|---|
| Gauteng | R2.34 | R2.63 | +R145 | Urban – Domestic |
| Western Cape | R2.29 | R2.58 | +R130 | Residential |
| KwaZulu-Natal | R2.10 | R2.42 | +R120 | Prepaid/Postpaid |
| Eastern Cape | R2.05 | R2.36 | +R115 | Residential |
| Limpopo | R1.95 | R2.24 | +R105 | Urban-Rural Mix |
| North West | R2.00 | R2.28 | +R110 | Residential |
| Mpumalanga | R2.14 | R2.41 | +R125 | Urban/Rural |
| Free State | R1.92 | R2.20 | +R95 | Urban |
Key Reasons Behind the August 1 Electricity Tariff Hike
This electricity price increase is not random. There are several contributing factors cited by both Eskom and NERSA.
- Increased operational and infrastructure upgrade costs
- Continued impact of load shedding and diesel usage
- National energy generation shortfalls
- Regulatory adjustments under the Multi-Year Price Determination (MYPD5)
How NERSA Approved the Electricity Tariff Hike Plan
NERSA conducted multiple consultations before approving the new rates. The new model prioritizes cost recovery and grid stability.
- Eskom’s application was submitted under the MYPD5 framework.
- Municipalities submitted independent tariff proposals for approval.
- NERSA emphasized transparency and stakeholder feedback.
- Approval was granted with conditions for quarterly audits.
Impact on Households: Budget Adjustments You May Need
With increased per-unit rates, average electricity bills will climb sharply, especially for middle-income households and heavy users.
- Households consuming 500 kWh/month will see bills go up by R110–R150.
- Low-consumption users (under 200 kWh/month) will see a R60–R80 increase.
- Prepaid meter users may need more frequent recharges.
- Solar users and grid-independent homes remain largely unaffected.
Tips to Reduce Electricity Usage and Costs
Now more than ever, reducing power consumption is essential. Here are practical ways to cut down on bills:
- Shift high-usage appliances (like geysers and heaters) to solar.
- Use LED lighting and smart timers.
- Run washing machines and dishwashers during off-peak hours.
- Monitor daily usage with smart meters or apps.
Breakdown of Charges: Fixed Fees + Per Unit Cost
Besides the per unit usage rate, there are fixed monthly charges that vary across providers.
| Customer Type | Fixed Monthly Charge | Unit Rate (New) | Example Monthly Bill (400kWh) |
|---|---|---|---|
| Domestic – Prepaid | R0 | R2.60/kWh | R1,040 |
| Domestic – Postpaid | R218 | R2.48/kWh | R1,210 |
| Small Business | R560 | R2.35/kWh | R1,500 |
| Rural Tariff Users | R0 | R2.20/kWh | R880 |
Who Is Most Affected by the Price Hike?
Certain consumer categories are disproportionately impacted by the hike:
- Small businesses that rely on constant power usage
- Low-income households using electric stoves/geysers
- Tenants with shared meters but fixed usage splits
- Prepaid meter users in high-density areas
Relief Measures Under Consideration
Some municipalities are discussing subsidies or exemptions for poor households.
- Lifeline tariffs for indigent users (less than 100kWh/month)
- Winter relief subsidies in colder provinces
- VAT relief campaigns under review at national level
Departmental Contact Information for Queries and Complaints
For help with billing issues, tariff slabs, or subsidies, reach out to the appropriate department:
| Department/Municipality | Contact Number | Email Address | Availability |
|---|---|---|---|
| Eskom Customer Service | 08600 37566 | customerservices@eskom.co.za | Mon–Fri: 8am to 5pm |
| NERSA Tariff Helpdesk | 012 401 4600 | complaints@nersa.org.za | Mon–Fri: 9am to 4pm |
| City of Cape Town Electricity | 0860 103 089 | electricity@capetown.gov.za | Mon–Fri: 8am to 6pm |
| Johannesburg City Power | 011 490 7000 | customercare@citypower.co.za | 24/7 for emergencies |
| eThekwini (Durban) Electricity | 080 13 13 111 | electricity@durban.gov.za | Mon–Fri: 8am to 5pm |
Comparison of New vs Old Tariff (All Categories)
| Category | Old Tariff Rate | New Tariff Rate | Percentage Increase |
|---|---|---|---|
| Prepaid Residential | R2.20/kWh | R2.60/kWh | 18.2% |
| Postpaid Residential | R2.15/kWh | R2.48/kWh | 15.3% |
| Small Business | R2.05/kWh | R2.35/kWh | 14.6% |
| Municipal Lifeline | R1.10/kWh | R1.26/kWh | 14.5% |
As the new rates roll out, consumers are advised to adjust their budgets, explore energy-efficient practices, and stay informed about any municipal-level exemptions or rebates. With the rising cost of electricity, awareness and smart usage will be key to managing household expenses effectively.
FAQs of Electricity Tariff Hike
1. When does the new tariff come into effect?
From August 1, 2025, across all provinces.
2. Will prepaid users pay more than postpaid?
Yes, in most areas, prepaid per-unit cost is slightly higher but has no fixed charge.
3. Can I avoid the increase by using solar?
Yes, using solar panels or hybrid systems can reduce reliance on grid power.
4. Will this affect electricity grants or subsidies?
Some relief measures are being reviewed by municipalities for low-income users.
5. Who should I contact for billing complaints?
You can contact Eskom or your local municipal electricity provider using the contact details above.