Eskom has announced significant electricity Price Changes in its tariff structure for 2025/2026, which could result in higher costs for many South African households. These adjustments aim to align electricity prices with actual costs and address historical inefficiencies. Here’s what you need to know about these proposed changes and their impact.
Eskom’s Proposed Tariff Changes
Eskom recently submitted its 2025/2026 Retail Tariff Plan (RTP) to the National Energy Regulator of South Africa (Nersa). This marks the first time Nersa has initiated a public participation process to discuss potential approval of the RTP.
Why the Tariff Changes Are Proposed
Eskom claims that the new tariff structure is necessary to:
- Reflect accurate costs as the utility separates its operations into generation, transmission, and distribution.
- Ensure fair cost recovery and eliminate cross-subsidies.
- Support the integration of alternative energy sources for a sustainable electricity market.
However, critics argue that the adjustments are driven more by Eskom’s inefficiencies, including a bloated workforce, corruption, and debt mismanagement.
Key Changes in the Tariff Structure
The new RTP introduces two major changes:
- Increased Fixed Costs: Households will face higher fixed monthly charges, regardless of their electricity usage.
- Flat Rate for Electricity Consumption: Variable consumption charges will no longer follow an inclining block structure, which previously encouraged energy-saving behaviors.
Impact on Solar Power Users
Grid-Tied Solar Power Users
Eskom’s proposed tariffs will significantly impact grid-tied solar users who rely minimally on Eskom’s power supply. The increased fixed costs could force many users to upgrade their systems and completely disconnect from the grid.
Eskom board chairman Mteto Nyati addressed these users, emphasizing that many solar households still depend on the grid during unfavorable weather. However, this contradicts Eskom’s claim that higher-consuming households unfairly subsidize such users.
True Off-Grid Solutions
The proposed tariffs may inadvertently encourage more South Africans to move entirely off-grid, as the financial burden of staying grid-tied continues to rise.
How Non-Solar Users Will Be Affected
The largest impact of the RTP will be felt by low to middle-income households that rely on grid electricity and do not qualify for free basic electricity.
Increased Bills for Smaller Households
Households consuming less electricity will see the steepest percentage increases in their bills. For example, households using 200kWh per month could experience a 47.85% increase.
Decreasing Costs for High Consumers
Larger households or high-energy users will benefit from the removal of the inclining block tariffs. Bills for users consuming over 800kWh monthly will decrease significantly, creating a disparity in affordability.
Discrepancy in Average Consumption Calculations
Eskom claims the average household consumption is 900kWh per month. However, independent analyses suggest actual averages range from 185kWh to 450kWh. These discrepancies raise questions about the fairness of the proposed changes for average users.
Financial Impact: A Detailed Breakdown
The following table illustrates how monthly electricity bills will change under the RTP for different consumption levels:
| Monthly Consumption | Old bill | New bill | Change (before tariff hikes on April 2025) |
| 0kWh | R 225 | R 637 | +183.36% |
| 50kWh | R 366 | R 769 | +110.29% |
| 100kWh | R 507 | R 903 | +77.89% |
| 150kWh | R 649 | R 1,035 | +59.60% |
| 200kWh | R 790 | R 1,167 | +47.85% |
| 250kWh | R 930 | R 1,301 | +39.67% |
| 300kWh | R 1,072 | R 1,433 | +33.64% |
| 350kWh | R 1,213 | R 1,565 | +29.01% |
| 400kWh | R 1,355 | R 1,694 | +25.35% |
| 450kWh | R 1,496 | R 1,831 | +22.38% |
| 500kWh | R 1,636 | R 1,963 | +19.92% |
| 550kWh | R 1,778 | R 2, 095 | +17.86% |
| 600kWh | R 1,919 | R 2,228 | +16.09% |
| 650kWh | R 2,146 | R 2,361 | +9.99% |
| 700kWh | R 2,374 | R 2,493 | +5.5% |
| 750kWh | R 2,600 | R 2,625 | +0.98% |
| 800kWh | R 2,828 | R 2,758 | -2.44% |
| 850kWh | R 3,054 | R 2,891 | -5.36% |
| 900kWh | R 3,281 | R 3,023 | -7.87% |
| 950kWh | R 3,509 | R 3,156 | -10.05% |
| 1,000kWh | R 3,735 | R 3,288 | -11.97% |
| 1050kWh | R 3,963 | R 3,421 | -13.67% |
| 1,100kWh | R 4,417 | R 3,553 | -15.18% |
| 1,150kWh | R 4,417 | R 3,686 | -16.54% |
| 1,200kWh | R 4,644 | R 3,819 | -17.77% |
Note: These figures exclude the additional 36.15% and 43.65% annual tariff hikes Eskom has requested.
Conclusion
Eskom’s proposed tariff changes represent a dramatic shift in how electricity Price Changes are allocated among South African households. While the utility argues that the adjustments are necessary for sustainability and fairness, many consumers particularly low to middle-income earners are likely to face significant financial strain. At the same time, high-energy users stand to benefit, raising concerns about equity in the new structure.
FAQs
Why is Eskom increasing fixed costs for electricity?
Eskom claims that higher fixed costs are necessary to reflect the true cost of maintaining the grid and ensure fair cost recovery.
How will these changes affect solar power users?
Grid-tied solar users will face higher costs, potentially encouraging them to go completely off-grid.
What can small households do to manage rising electricity bills?
Small households may need to adopt energy-efficient appliances and explore alternative energy solutions, such as solar panels.
Why do larger households benefit from the new tariffs?
The removal of inclining block tariffs reduces the cost per unit of electricity for higher consumption levels, benefiting larger households.
When will these changes take effect?
If approved, the tariff changes will be implemented for the 2025/2026 financial year.
These proposed electricity Price Changes underscore the importance of public participation and transparency in decisions that directly affect the livelihoods of millions of South Africans.