NOORDWESTER - -LICHTENBURG- Households across the country need to brace for significant electricity price hikes to hit from 1 July, as municipalities prepare to implement above-inflation tariff increases.
National energy regulator Nersa received applications for tariff hikes from 130 municipalities in May, which it is currently processing for implementation from 1 July. Nersa approved the Eskom Retail Tariffs and Structural Adjustment (ERTSA) for 2025 in March, including the 12.74% increase for Eskom direct customers.
The regulator also approved the municipal tariff increase, which will see prices for municipal customers increase by at least 11.32% from 1 July.
The Nersa-approved municipal rate sets the goalpost for increases at municipalities across South Africa, but the final rates can vary once city and municipal councils factor in their own budgetary needs. This requires that each municipal distributor apply for their respective tariff hikes with Nersa, including the justifications for any deviations.
While most municipalities will keep their increases in line with Eskom’s rate, some regions, such as the City of Cape Town, may apply for higher (or even lower) rates. However, it must be noted that the approved increases reflect an average increase across all packages, and individual bills may come in higher or lower, depending on energy consumption.
This is a rude awakening for some Eskom direct customers, who have already been shocked by the price escalation in April. Multiple citizens have submitted their electricity bills to BusinessTech, showing increases far above the 12.7% approved by Eskom. In some cases, charges shot up by 88%, with most others coming in around 30% higher than before.
According to Eskom, the 12.7% increase is not a single increase implemented on all customers but rather the average across all Eskom residential tariffs. It said that the average does not reflect the specific changes to each individual component of the tariff, which may vary depending on the tariff category and the characteristics of supply.
“These components are adjusted individually, and their combined effect may result in a higher overall increase than the average 12.74%, depending on your specific usage and tariff structure,” Eskom said.
Various energy experts flagged this and analysts ahead of the price increases, who stressed that the new pricing structures allowed by Nersa, including new capacity and service charges, would result in higher bills.
