Eskom’s 2025 Electricity Price Hike: How South African Households Will Be Affected

South African households should brace themselves for steeper electricity bills starting April 1, 2025, as Eskom rolls out its new tariff increases and revised pricing structures.

Eskom direct customers will see an average electricity price hike of 12.74%, but for many, the actual increase will be even higher due to new fixed service charges and the elimination of inclined block tariffs. Municipal customers will experience these changes a few months later, from July 1, 2025.

Energy expert Chris Yelland, managing director of EE Business Intelligence, warns that lower-income households will bear the brunt of the changes, while higher-income users might find ways to mitigate costs.

What’s Changing?

Eskom’s pricing overhaul adjusts the cross-subsidies between different types of customers, affecting urban vs. rural households, large vs. small consumers, and lower-income vs. higher-income groups. Here’s what you need to know:

1. New Fixed Charges and Time-of-Use Tariffs

• Customers will now face fixed service fees, increasing overall electricity costs.

• Time-of-use tariffs will introduce peak-hour pricing in summer and winter.

• The inclined block tariff (which offered lower rates for lower consumption) is being scrapped.

2. Impact on Different Eskom Tariff Groups

Eskom has three main residential tariff structures:

Homelight (20A & 60A) – For low-income households

• Biggest increase for those using less than 350 kWh per month – a 13.57% hike, higher than the average 12.74%.

• Low-usage Homelight 60A customers will be hit hardest, facing increases up to 18.26%.

• Many indigent households won’t get relief as they do not receive free basic electricity due to missing municipal indigent registers.

Homepower (1-4) – For middle- to high-income households

• Customers using 750 kWh or less per month will see significant cost increases.

• Those using 1100 kWh or more per month may actually see price reductions.

• The fixed monthly charge on Homepower 4 increases by 88%, from R192.90 to R362.70, hitting lower-usage households hardest.

Homeflex (1-4) – For middle- to high-income households using time-of-use tariffs

• Cost increases will depend on how customers adjust their power usage.

• Peak and standard rates in summer and winter will surge, leading to higher electricity bills.

Who Will Be Hit the Hardest?

• Low-income households on Homelight 20A and 60A will struggle most, as they have fewer ways to reduce costs.

• Middle-income users on Homepower with moderate consumption will also experience significant increases.

• High-income users with flexible power usage (Homeflex) may be able to adapt and reduce costs.

What Can Households Do to Reduce the Impact?

1. Monitor electricity usage – Avoid peak-hour consumption where possible.

2. Switch to energy-efficient appliances – Reduce overall energy consumption.

3. Explore solar options – Long-term investment to offset rising costs.

4. Check eligibility for municipal indigent programs – Ensure you’re registered for any available subsidies.

Final Thoughts

While Eskom argues that the new tariff structure is fairer in the long run, many South African households, especially those with lower incomes, will feel the financial strain. With fixed charges increasing and subsidies being removed, it’s essential for consumers to plan ahead and manage their electricity use smartly.

Prepare for higher electricity bills from April 1, 2025, and if you’re a municipal customer, expect the impact from July 1, 2025.

{Source BusinessTech}

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