Households with low monthly electricity usage may bear the brunt of Eskom’s tariff increases as their bills are expected to rise as much as 37% from April 1.
This is even though energy regulator Nersa has limited the average increase in Eskom’s tariffs to 12.74%, which is much higher than the inflation rate.
For municipalities, the increase will apply from July 1 and is set at an average of 11.32%.
Eskom initially asked for an increase of 36% for the coming financial year, but this was widely rejected as unaffordable.
According to tariff experts, the adjustments in the structure of Eskom’s tariffs will result in larger increases for some consumers while others will see increases below the 12.74% average.
Nersa determined at the end of January how much revenue Eskom may recover from consumers through electricity tariffs, and it approved Eskom’s new tariffs plan that provides for the unbundling and restructuring of tariffs. Eskom was then given an opportunity to calculate the detailed tariffs for each consumer group.
On Friday, Nersa approved the tariffs and tabled them in parliament, as required by law.
Johan Hopley, a senior manager at Impact Meter Services, has calculated the impact on households of Eskom’s Homepower 4 residential electricity tariff. A household that consumes 250 kWh a month is now billed R924.66, including fixed charges of R190.20 a month.
With the average increase of 12.74%, as well as the structural change in tariffs, Hopley expects the bill to increase to R1 ,266.84 a month, including fixed charges of R362.70. In total, the bill would increase by 37%. If the same household consumes 600 kWh per month, the bill would increase from R1,912.96 to R2,456.47, or by 28.5%.
A household that consumes more electricity would see lower increases, says Hopley. At a consumption level of 900 kWh per month, the increase would be 6%, with reduced tariffs for households that use 1,200 kWh per month.
The increased burden on smaller users is largely because of the removal of Eskom’s inclining block tariff. This had two tariff tiers: the first 600 kWh a month were charged at a lower rate of R2.45/kWh, and everything beyond that was charged at R3.95/kWh.
This meant that those who consumed more electricity subsidised smaller users, who Nersa assumed were poorer families.
When it considered Eskom’s application to change the tariff structure earlier in 2025, Nersa admitted the block tariff system did not meet its objective. As consumers began to install solar panels to mitigate against load-shedding their consumption of Eskom’s electricity dropped, and those affluent consumers began to benefit from the subsidies meant for the poor.
Nersa also realised that more than one poor family sometimes resided on the same property and used more electricity, which would push them into the more expensive bracket.
The two blocks have now been abolished and there is one energy charge of R2.95/kWh, irrespective of consumption.
Hopley said Eskom offered alternative tariffs, but consumers did not know about them “and Eskom won’t tell you about it”.
To switch tariffs “is a process, but one mustn’t give up”, Hopley advised.
Chris Yelland, independent energy adviser to the Organisation Against Tax Abuse (Outa), said Eskom’s new tariffs were antipoor, with prices rising for the poor and falling for the rich because of the phasing out of subsidies.
He advised Eskom’s small residential users to rather switch to the Homelight tariff that is available to them and offers a single energy charge of R2.75/kWh and no fixed charges.
Yelland agreed that the Eskom tariff book was “impossible for lay people to navigate”.
According to Hopley, households on the Homelight 60A tariff would see an 18% increase at a consumption level of 250kWh/ month.
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