Depending on consumption, South African households could pay up to R2 500 extra per month for electricity.
Eskom plans to apply for an increase of up to 44% in the rates it charges for electricity, which could take effect as early as April 2025.
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This is according to a confidential document seen by Daily Maverick, in which the national power utility details increases in electricity tariffs for its 2026 (up to) 2028 financial years.
The document also details Eskom’s envisaged revenue from these increases.
The draft document, dated May 2024, is one of many steps to adhere to the National Energy Regulator of South Africa’s (Nersa) revenue application process.
This process also includes a public comment and hearing process, which will be used to determine the average price of electricity.
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According to the document, Eskom requests that Nersa raise the regular price charges for non-municipal consumers by 36.15% in 2026, 11.81% in 2027, and 9.10% in 2028. These are clients the power company provides electricity to and charges directly through Eskom.
If approved, the first increase will come into effect on 1 April 2025.
Customers who rely on power supply from their municipalities would also be affected as Eskom plans to increase their tariffs by 43.55% in 2026; 3.36% in 2027 and 11.07% in 2028.
If approved, these increases would come into effect on 1 July 2025.
As reported by Daily Maverick, the increases could potentially generate R446 billion, R495 billion and R537 billion in revenue for 2026, 2027, and 2028 respectively.
According to BusinessTech, these increases translate to a hike of up to R2 500 per month. A household with an average consumption of 900kWh could pay up to R1 600 extra per month.
The publication crunched the numbers to determine the cost increase for households who consume between 600kWh and 1 500kWh, considering the surcharge after the first 600 units.
However, energy analyst Mohamed Madhi told eNCA that there is no need to panic as is it unlikely that Eskom’s wishes could come true.
‘If you look back, before the 2023/24 increase, they asked for an increase of 32%, and they got an increase of just over 18%.’
Conversely, he warned that South Africans could face another double-digit increase in 2025.
In December 2023, then-Eskom CEO Andre de Ruyter said government bailouts are crucial to the power utility’s recovery, stating that it needed cost-reflective tariffs from Nersa to survive.
‘If electricity tariffs don’t match the cost of electricity generation, Eskom will be back at the National Treasury’s door begging for more money,’ he said.
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