Eskom Seeks Significant Electricity Price Increases for 2025
Eskom, South Africa’s state-owned power utility, is proposing substantial electricity tariff hikes for 2025. These increases, if approved by the National Energy Regulator of South Africa (Nersa), could significantly impact household electricity bills.
Proposed Increases:
Direct Customers: Eskom proposes a 36.15% increase for customers it directly supplies.
Municipal Customers: An even higher increase of 43.55% is proposed for customers who receive electricity through local municipalities.
Impact on Bills:
Estimated Increase Range: Depending on consumption, household electricity bills could increase by R692 to R2,535 per month (assuming the worst-case scenario where Eskom receives the full requested increase).
Average Consumption (900kWh): Households with average consumption could see an additional R1,600 per month on their electricity bills.
Timeline and Approval Process:
Draft Document: These proposed increases are outlined in a confidential draft document dated May 2024.
Implementation: If approved, the increases would come into effect on 1 July 2025.
Public Input: The proposed hikes are subject to public comment and hearing processes before Nersa makes a final decision.
Expert Analysis:
Energy Analyst Perspective: Energy analyst Mohamed Madhi told eNCA he anticipates a double-digit increase in the teens for next year, even though Eskom may not receive the full requested amount. This aligns with past trends where Eskom requested higher increases than ultimately approved by Nersa.
Background:
Financial Situation: Eskom’s financial situation necessitates increased revenue.
Cost-Reflective Tariffs: Former CEO Andre de Ruyter emphasized the need for cost-reflective tariffs from Nersa to ensure Eskom’s financial sustainability.
Important Note:
The proposed increases are estimates based on the worst-case scenario and should be viewed as a potential impact on electricity bills. The actual increase will depend on Nersa’s final decision after considering public input.
| Eskom Homepower bills from 1 July 2025 Includes network capacity charges |
||||
|---|---|---|---|---|
| Tariff Schedule | Homepower 1 | Homepower 2 | Homepower 3 | Homepower 4 |
| 600kWh per month | ||||
| 2024 bill | R2,057.22 | R2,374.32 | R3,097.92 | R1,915.92 |
| 2025 bill | R2,800.90 | R3,232.64 | R4217.82 | R2,608.53 |
| Increase | R743.68 | R858.32 | R1,119.90 | R692.61 |
| 900kWh per month | ||||
| 2024 bill | R3,394.86 | R3,678.60 | R4,402.20 | R3,278.19 |
| 2025 bill | R4,622.10 | R5,008.41 | R5,993.60 | R4,463.26 |
| Increase | R1,227.24 | R1,329.81 | R1,591.40 | R1,185.07 |
| 1,200kWh per month | ||||
| 2024 bill | R4,732.50 | R4,982.88 | R5,706.48 | R4,640.46 |
| 2025 bill | R6,443.30 | R6,784.19 | R7,769.37 | R6,317.99 |
| Increase | R1,710.80 | R1,801.31 | R2,062.89 | R1,677.53 |
| 1,500kWh per month | ||||
| 2024 bill | R6,070.14 | R6,287.16 | R7,010.76 | R6,002.73 |
| 2025 bill | R8,264.50 | R8,559.97 | R9,545.15 | R8,172.72 |
| Increase | R2,194.36 | R2,272.81 | R2,534.39 | R2,169.99 |
Above table from BusinessTech
