Electricity costs in South Africa are rising again, and both households and businesses are feeling the pressure. As Eskom implements its approved electricity tariff increases for the 2025/2026 financial year, it is more important than ever for you as an electricity consumer to understand what these changes mean for your monthly electricity bill and operational costs. Whether you are a homeowner managing your household budget or a business owner looking to cut overheads, these changes will impact your bottom line.
Breakdown of Eskom’s Approved Tariff Increases
The National Energy Regulator of South Africa (NERSA)has approved the following tariff increases:
- Residential, urban, and rural users: 12.75% increase effective from 1 April 2025
- Municipal bulk electricity purchases: 11.35% increase effective from 1 July 2025
This change will affect both private electricity users and municipalities and businesses that rely on Eskom-supplied or municipally distributed electricity.
Why Are Eskom Electricity Prices Going Up?
There are several key factors playing a role in driving these electricity price increases:
- Rising operational costs at Eskom, especially due to its heavy dependence on coal-based energy
- Ageing infrastructure and underinvestment in maintenance
- Growing debt servicing costs
- Regulatory and policy challenges
- Persistent operational inefficiencies
These long-standing issues have resulted in year-on-year tariff hikes that continue to outpace inflation and put strain on consumers and the economy alike.
What This Means for South African Households, Businesses and Municipalities
Since the 2008 electricity crisis, South Africans have seen electricity tariffs increase by over 900%, far beyond inflation. A 2024 report by GlobalPetrolPrices.com ranks South Africa among the top 50 most expensive countries for electricity, with an average cost of R3.29 per kWh.
For Households:
Households can expect an average electricity bill increase of 10–15%, depending on usage. As a result of the increased tariffs, many families are now being forced to make budget cuts or invest in alternative energy sources.
For Businesses:
The increased tariffs impact on businesses and increased operational costs could lead to:
- Reduced profitability
- Job losses
- Higher prices passed on to consumers
- Lower investor confidence
- Decreased national GDP output
For Municipalities:
What this means for you as an electricity consumer in South Africa’s major municipalities that use Powertime’s services is that each major city has adjusted their tariffs accordingly based on the 1 July 2025 increase and it will significantly affect your utility bill, net income and budget. These tariff increases are as follows:
City of Cape Town: Residents can expect a tariff increase of 12.80% which will result in higher utility bills both for households and businesses.
City of Johannesburg: Residents can expect a tariff increase of 12.41% which is the same for City Power and this increase places a significant burden on the city’s large population and high demand.
City of Tshwane: Residents can expect a 10.20% tariff increase which will reflect on their utility bills.
City of Ekurhuleni: With one of the highest increases across the metros, residents can expect a 13.40% tariff increase which means residents will pay more for electricity each month.
City of Stellenbosch: Residents can expect a 9.95% tariff increase, which is lower than Eskom’s 11.35% tariff.
It is clear that for households, businesses and municipalities, electricity is no longer just a utility or a luxury, it is both a necessity and a strategic cost that needs to be actively managed on a day-to-day basis.
How to Reduce Your Electricity Costs
Whether you’re running a household or a business, here are a few practical, proven strategies to reduce your electricity usage and protect your bottom line.
Energy-Saving Tips for Homes and Businesses:
- Reduce peak-time usage and run energy-intensive appliances like geysers, dishwashers, and washing machines between 10pm and 6am.
- Turn off and unplug standby appliances as devices still draw power even when not in use. This small habit can shave up to 10% off your bill.
- Optimize refrigerator and freezer settings and set fridges to 3ºC, defrost regularly, and avoid opening frequently.
- Switch off lights and electronics in rooms where they are not being used. Encourage switch-off culture at home and at work and switch off electronics in standby mode as they can add 10% to your bill.
- Invest in high-performance portable power stations, especially during peak demand or outages. These can be solar-compatible and paired with smart thermostats.
- Use a UPS to keep critical systems online, especially for businesses, keeping servers or routers running is crucial.
- Create hybrid energy solutions such as combining solar, generators, and battery backups to reduce grid reliance.
- Upgrade to energy-efficient appliances where applicable and look for energy star-rated or eco-mode devices for long-term savings.
- Use natural resources as much as possible and dry clothes outdoors, cook during the day, and utilize sunlight for lighting where possible.
- Regularly maintain and service appliances to ensure they run efficiently as faulty or poorly maintained appliances consume more power.
- Understand your electricity bill and usage and make it a habit to review your electricity statement to identify high-consumption appliances or patterns.
Final Thoughts: Navigating South Africa’s Energy Future
As Eskom continues to adjust tariffs to cover its rising costs, electricity prices in South Africa are likely to remain volatile. Businesses and households need to proactively manage energy consumption to remain financially resilient. There is no quick fix, but with smart energy habits, strategic investments, better understanding of your energy usage and Powertime’s insights, you can take control of your electricity costs.
Visit Powertime at https://www.powertime.co.za/ to find out more about our services.