South Africans are facing yet another above-inflation electricity price hike as the National Energy Regulator of South Africa (Nersa) has approved a 12.7% tariff increase for Eskom, effective April 2025. This increase continues a decade-long trend of rising electricity costs, which have nearly tripled since 2014.
How much more will households pay?
For a typical 800 kWh/month Eskom customer, electricity bills have already soared from R1,055 in 2014 to R2,948 in 2024—a 179.42% increase. With the latest hike, the same household will now pay R3,324 per month in 2025.
Minister of Electricity Kgosientsho Ramokgopa highlighted the shocking scale of these increases, saying for direct customers it has increased by 12.74% for the 2024/2025 period.
““While specific per kWh costs vary based on customer category and usage, residential customers consuming 600 kWh per month are now paying approximately R1,491.06 monthly, equating to about R2.49 per kWh,” Ramokgopa said.
To make matters worse, further increases of 5.36% in 2026 and 6.19% in 2027 will see the average bill climb to R3,663 by 2027.
These increases far outstrip inflation, which has only risen by 67.8% in the same period. Jacques Moolman, President of the Cape Chamber of Commerce and Industry, noted:
“Electricity prices have escalated by 1041% over the last 10 years. In addition, one needs to consider the compound effect of these kinds of increases – future increases are calculated off a higher base.“
Why are electricity prices rising?
Eskom justifies these increases by citing its financial crisis, which stems from:
- Aging infrastructure, requiring urgent maintenance and upgrades.
- Soaring debt, including billions owed by municipalities.
- Load shedding, which has strained the grid and increased operational costs.
Eskom initially applied for an even higher increase as part of its Multi-Year Price Determination (MYPD6) application, seeking a 36.15% hike for 2025. While Nersa reduced the request to 12.7%, the increase is still well above the current 3% inflation rate.
“The 12.74% tariff increase, while substantially less than Eskom’s requested 36.15%, is cold comfort for households and businesses already struggling to afford electricity, and which now face yet another above-inflation increase – with the likelihood of more to come,” said Moolman.
Impact on the poor: a growing energy crisis
Low-income households will bear the brunt of this increase, as many already struggle to afford electricity. The affordability subsidy charge, designed to support the poor, has also increased by 25.24%, making basic power even more expensive.
“The increase afforded to Eskom is 3x the national inflation rate and will put massive additional pressure on the prices of goods and services across the spectrum,” said the Democratic Alliance (DA).
With the Economic Freedom Fighters (EFF) describing the tariff hike as “an assault to the poor and the working class who are already grappling with economic hardships,” it may only be a matter of time before many are forced to choose between food and electricity. Those unable to afford power could turn to paraffin, gas, or even illegal connections, increasing safety risks in vulnerable communities.
If the hike is approved “it will certainly worsen the economic difficulties facing South Africa, one of the most unequal countries in the world,” warned Steven Matome, senior lecturer at the African Energy Leadership Centre, Wits Business School; he noted that the country is already battling extremely high unemployment rate (33.5%at the last count). “Economic growth is also very slow, at a mere 0.6% in 2023. The cost of living is high…exorbitant increases in electricity costs aggravate these problems,” Matome added.
Businesses and the economy under pressure
Small and medium-sized businesses (SMEs) will also feel the impact, with higher electricity costs pushing up production expenses and reducing profitability. The Black Entrepreneurs Alliance (BEA) has warned the proposed hikes would have significant economic strain on small businesses and emerging entrepreneurs.
“This is a recipe for disaster, particularly for small businesses and low-income households that are already struggling to make ends meet. The rising cost of living and unemployment in South Africa cannot withstand yet another financial burden,” said BEA CEO Refilwe Monageng.
Opposition and calls for reform
Opposition parties and business groups argue that Eskom should focus on cutting wasteful spending and improving debt collection from municipalities instead of repeatedly burdening consumers.
The Democratic Alliance (DA) slammed Eskom’s financial mismanagement, stating:
“Consumers cannot continue to pay for Eskom’s failures. The government must enforce stricter financial discipline and stop passing the cost of corruption onto South Africans.”
The Cape Chamber of Commerce also criticised the handling of municipal debt, with Moolman warning:
“We sincerely hope that the intention is not to recover it through taxes, because in effect we would then be paying for it again. The last thing struggling households and businesses need is another ‘double taxation’ to offset the financial costs of Government inefficiency.”
Eskom’s recovery plan: will It work?
In response to mounting criticism, Eskom has launched its Financial Recovery Plan, aimed at stabilising its finances by:
- Restructuring its massive debt to lower borrowing costs.
- Improving operational efficiencies to reduce financial losses.
- Procuring new generation capacity from multiple energy sources
Eskom insists that these measures will help keep tariffs “affordable” while ensuring long-term energy security. However, critics remain skeptical, with SAFTU (South African Federation of Trade Unions) i Mashaba warning that these hikes will not stop:
“Until NERSA’s independence is restored to operate and regulate in the interest of the public, not corporate or state capture forces.”
What can households do?
With no relief in sight, many South Africans are turning to alternative energy sources like solar power. However, the high upfront costs – and installation cost ranging from R50,000 to R150,000 – make solar inaccessible for many low-income households.
Some experts suggest that government-funded solar projects in townships could help, but there has been little movement in implementing such programs. To mitigate the impact, consumers are encouraged to:
- Use energy-efficient appliances to reduce consumption.
- Switch off appliances and gadgets when not in use.
- Consider prepaid meters for better cost control.
*To read about more energy saving tips, visit www.eskom.co.za/eas/energy-saving-tips/
Reality in a glance
The 12.7% electricity price hike is yet another devastating blow to South Africa’s poorest households. With already stretched budgets, many families will be forced to choose between electricity and basic necessities like food and healthcare.
Despite government promises, energy poverty is deepening, pushing more people towards dangerous alternatives like paraffin, candles, and illegal connections. As frustration grows, trade unions, political parties, and community members have all voiced their outrage, warning that these price hikes are unsustainable.
While Eskom argues that the increase is necessary, the reality is clear: millions of South Africans are being priced out of a basic human need—electricity. Without urgent reforms to tackle corruption, municipal debt, and mismanagement, the poor will continue to suffer the most, left to navigate an economy where survival gets harder every day.
