R2,268 per month electricity price blow for South Africans

 ·3 Feb 2025

South African households are facing yet another electricity price blow as the National Energy Regulator of South Africa (Nersa) has approved a 12.7% tariff increase for Eskom, effective from April 2025.

This latest hike continues a decade-long trend of soaring electricity costs, with South Africans now paying significantly more for power than they did in 2014.

According to Energy Minister Kgosientsho Ramokgopa, during a recent parliamentary Q&A, a typical Eskom customer consuming 800 kilowatt-hours (kWh) per month paid around R1,055 in 2014.

In the current 2024/25 period, that same customer is now paying R2,948—an increase of 179.42%.

With the approved tariff hike for 2025, the monthly bill will rise further to approximately R3,324.

This means South Africans will be paying R2,268 more per month for electricity than they did a decade ago, a near-tripling of costs.

By 2027, with further approved increases of 5.36% in 2026 and 6.19% in 2027, that figure could climb to R2,663.

These increases far outpace inflation, which has only risen by 67.8% over the same period.

The latest hike also exceeds current inflation, which sits at around 3%, highlighting the heavy financial burden placed on consumers.

Eskom had initially applied for even higher increases as part of its Multi-Year Price Determination (MYPD6) application, seeking a cumulative 66% hike over three years.

However, Nersa significantly reduced these requests, approving only 35% of Eskom’s 2025 application.

Despite Nersa’s commitment to transparency, the regulator has faced criticism for concealing its tariff recommendations from public scrutiny.

In March 2024, Nersa assured the public that tariff deliberations would be open and accessible, but it later opted to keep these discussions behind closed doors.

This lack of transparency has fueled public frustration, particularly as electricity costs continue to escalate.

Energy Minister Kgosientsho Ramokgopa

Eskom argues that these tariff increases are necessary to address its deep-seated financial and operational challenges.

The state-owned power utility has been struggling with ageing infrastructure, severe debt, and the need to maintain a stable electricity supply amid persistent load shedding.

Without significant revenue adjustments, Eskom warns that its ability to provide reliable power will be further compromised.

The steep rise in electricity costs has drawn sharp criticism from opposition parties, including ActionSA and the Democratic Alliance (DA).

They argue that Eskom should focus on internal reforms instead of burdening consumers with higher prices.

These parties have called for an end to wasteful spending, stricter debt collection from municipalities, and greater transparency in Eskom’s financial management.

They warn that continued price hikes will stifle economic growth by increasing production costs, reducing disposable income, and hindering potential interest rate cuts.

To address its financial crisis and contain future tariff hikes, Eskom has implemented the Eskom Financial Recovery Plan.

This strategy aims to stabilise the utility’s financial position by reducing its massive debt burden through government-backed initiatives and operational efficiencies.

A key component of the plan is restructuring Eskom’s legacy debt, which stems from years of inefficiencies and corruption.

By improving its financial standing, Eskom hopes to secure funding at lower interest rates, ultimately reducing the cost of borrowing.

Eskom insists that these measures will help keep tariffs within affordable limits while restoring investor confidence.

With the latest hikes set to take effect in April 2025, South Africans will once again be forced to absorb rising costs.

For many households, these increases are unsustainable, pushing them to explore alternative energy sources such as solar power.

Unless Eskom can deliver on its financial recovery plan and implement meaningful reforms, electricity prices will likely continue to rise, placing even greater pressure on struggling consumers.

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