Electricity Tariff Hike – Electricity just got more expensive for millions of South Africans. From August 11, 2025, a revised tariff structure has officially taken effect, leading to higher monthly bills for residential and business consumers alike. Eskom, South Africa’s national power utility, has confirmed the implementation of a tariff hike approved by the National Energy Regulator of South Africa (NERSA), following their earlier announcement in March this year. This tariff adjustment is part of a multi-year price determination plan which Eskom had submitted to NERSA in 2022. With the cost of electricity production rising due to increased fuel costs, grid maintenance, and infrastructure upgrades, the hike was inevitable. While authorities argue that the new pricing model will help ensure energy sustainability, consumers are left scrambling to manage household budgets under inflation pressure. The increase is being met with frustration and concern from many South Africans who are already grappling with high unemployment, stagnant wages, and increasing food and transport costs. Civil society groups have called for transparent usage of the collected funds and faster progress on stable, reliable power supply. Below is a full breakdown of the changes and what they mean for consumers, small businesses, prepaid users, and more.
New Electricity Tariff from August 11: What Changed?
Eskom’s new tariff structure affects both prepaid and postpaid customers. While the percentage increase varies across customer categories, most users will now be paying significantly more per kilowatt-hour (kWh).
- Residential users to pay up to 12.74% more on average.
- Prepaid electricity customers to face a steeper rate per unit.
- High consumption households to be affected the most.
- Lifeline (Free Basic Electricity) users to remain partially protected.
Updated Per-Unit Prices (August 2025) – Residential and Prepaid Users
| Customer Type | Previous Rate (per kWh) | New Rate (per kWh) | % Increase |
|---|---|---|---|
| Prepaid Domestic Users | R2.14 | R2.42 | 13.1% |
| Postpaid Domestic Users | R2.07 | R2.33 | 12.6% |
| Lifeline Tariff Users | R1.35 | R1.49 | 10.3% |
| Block 1 (0–350 kWh/month) | R1.98 | R2.22 | 12.1% |
| Block 2 (351–600 kWh/month) | R2.47 | R2.79 | 12.9% |
| Block 3 (Above 600 kWh) | R2.89 | R3.30 | 14.1% |
| Small Business (SME) Users | R2.71 | R3.02 | 11.4% |
| Agricultural Supply Users | R1.89 | R2.10 | 11.1% |
How This Electricity Tariff Hike Affects Different Households
Every household will feel the impact differently depending on their average electricity usage. Here’s how the increase will affect monthly bills across varying consumption levels.
- Low-use households may see a R50–R100 increase per month.
- Medium-use households could pay R150–R250 extra monthly.
- High-use households consuming over 600 kWh/month may pay R350–R500 more.
Monthly Bill Estimates After August 11
| Monthly Usage (kWh) | Old Monthly Bill (R) | New Monthly Bill (R) | Increase (R) |
|---|---|---|---|
| 150 | R321 | R363 | R42 |
| 250 | R518 | R586 | R68 |
| 400 | R988 | R1,104 | R116 |
| 600 | R1,540 | R1,735 | R195 |
| 800 | R2,155 | R2,445 | R290 |
| 1,000 | R2,760 | R3,140 | R380 |
| 1,200 | R3,332 | R3,790 | R458 |
| 1,500 | R4,152 | R4,725 | R573 |
Prepaid Customers: Why You’re Paying More Per Unit
Prepaid customers continue to express frustration as their rates climb more steeply than those on monthly billing. Eskom attributes this to administrative costs and limited ability to adjust block structures for prepaid systems.
- No flexibility in block management for prepaid meters.
- Higher upfront cost leads to less value per unit.
- Block tariffs for prepaid users adjusted without notice.
Prepaid Block Tariffs Breakdown
| Units Purchased (kWh) | Previous Total (R) | New Total (R) | Approx. Units Received |
|---|---|---|---|
| R100 | R100 | R100 | 47 (previously 52) |
| R200 | R200 | R200 | 93 (previously 104) |
| R500 | R500 | R500 | 224 (previously 249) |
| R1000 | R1000 | R1000 | 445 (previously 492) |
Government’s Stand and Relief Measures
While the government acknowledges the price hike, it continues to maintain that this is necessary for energy infrastructure upgrades and reducing Eskom’s debt burden. However, they have also outlined limited relief measures for low-income households.
- Free Basic Electricity (FBE) to continue for indigent households.
- Government subsidies remain in place for municipalities offering indigent support.
- No additional stimulus or grants announced for electricity coverage.
Current Free Basic Electricity (FBE) Provision by Household Type
| Household Income Status | Monthly FBE Allocation | Criteria |
|---|---|---|
| Indigent Households | 50–60 kWh | Registered with municipality |
| Pensioners | 60 kWh | Above 60 years, income-tested |
| Informal Settlements | 50 kWh | Through Eskom’s Electrification Programme |
Departments You Can Contact for Clarification or Assistance
For those needing clarification or seeking assistance with billing, prepaid meter resets, or registration for FBE, here are the key contact details.
Departmental Contact Information
| Department/Entity | Contact Number | Email Address | Services Offered |
|---|---|---|---|
| Eskom Customer Care | 08600 37566 | customerservices@eskom.co.za | Billing queries, prepaid issues, supply faults |
| NERSA | 012 401 4600 | complaints@nersa.org.za | Tariff complaints, regulation disputes |
| Department of Energy | 012 406 7481 | info@energy.gov.za | Policy matters, energy relief programs |
| Local Municipality | Varies per region | Contact local offices | FBE registration, indigent grant queries |
| City Power (Johannesburg) | 0860 562 874 | faults@citypower.co.za | Prepaid faults, consumption billing |
| Nelson Mandela Bay Municipality | 041 506 5512 | electricity@mandelametro.gov.za | Metering issues, FBE assistance |
| eThekwini Municipality | 080 131 3013 | electricity@durban.gov.za | Tariff band clarification |
| Western Cape Government | 021 483 3911 | service@westerncape.gov.za | Provincial energy support and subsidy programs |
What Can You Do to Manage Your Electricity Costs?
Even though you cannot control tariff increases, you can still take charge of your electricity usage with smart planning. Here are a few practical ways:
Energy Saving Tips That Can Make a Difference
- Switch to LED bulbs across the house.
- Run washing machines and geysers during off-peak hours.
- Limit use of electric heaters and ovens.
- Unplug appliances when not in use to reduce phantom load.
- Use solar-powered alternatives where possible.
While the latest electricity tariff hike may feel like a harsh blow to already struggling households, it’s essential to understand the breakdown, track your usage, and make informed decisions about energy consumption. Staying informed and accessing available support can help mitigate the impact over the coming months.
FAQs of Electricity Tariff Hike
Q1: How much has the electricity price increased from August 11, 2025?
The average increase is around 12.74%, but varies based on usage and customer category.
Q2: Who qualifies for Free Basic Electricity (FBE)?
Households registered as indigent or pensioners with local municipalities qualify for 50–60 kWh per month.
Q3: Are prepaid customers being charged more than postpaid users?
Yes, prepaid users face higher per-unit rates due to less flexibility in block adjustments.
Q4: Where can I report an unusually high bill?
You can report billing issues to Eskom Customer Care or your local municipality depending on your service provider.
Q5: Will the electricity tariff go up again in 2026?
Yes, Eskom’s multi-year price determination includes annual increases until at least 2027 as approved by NERSA.