African consumers are expecting a very big hike in their electricity bills which is coming on the 10th of October 2025, as the National Energy Regulator of South Africa (NERSA) has given the green light to new tariff changes. Eskom will increase the prices by 12.74% for its direct customers, and the municipalities that buy power from Eskom are going to increase the local rates by 11.32% adding the power cost.
This is a part of a long-term strategy that began in 2025/26 to make the power tariffs coincide with the operational costs, cut down the electricity sector subsidies and sector debts. The impact will be all year-round, although October will be the month when the first major hike under the new system takes place.
Major Restructuring In Tariff System
The new tariff system for 2025 is not merely a matter of changing the percentages. Various methods of pricing are being reformed:
- Flat rates take the place of block tariffs: All consumers will be charged the same rate per unit of electricity no matter how much they use. Before, the consumption of less electricity was rewarded with lower per-unit rates under a block system.
- The monthly fixed or basic charges will increase greatly: Some households will have their fixed charges jump by as much as 88%.
- The peak and off-peak periods have been redesigned: The length of off-peak hours will be cut back, the peak times will be lengthened, and the discount rate for Sunday evening will be done away with completely.
The goal of these reforms is to recover the costs and at the same time, discourage the unnecessary use of energy; however, they will still be a heavy burden on the households especially, the ones that consume less amount of energy.
Impact On Households, Businesses & Vulnerable Users
The changeover to flat rates and higher fixed charges could lead to an overall consumption-based price increase for households, less than 350 kWh per month, that being a very steep one. Low users were somewhat protected before; under the new model, their buffer is wiped out. Local surcharges might be kept or raised by municipalities, which will only make the situation worse.
To soften the impact, some municipalities may offer free basic electricity programs or subsidies for low-income households as a way of softening the impact. These support systems become mobilized as essential under the new regime.
Business users may have their paths to impact more tangled. A lot of them have custom contracts or bulk purchases that may not feel the impact or even get better due to the unbundling of tariffs. However, they will also have an increase in their fixed and peak costs.
How To Reduce Your Electricity Bill Under The New Rates
Doing the smart thing is one of the electricity consumers’ options once the increased tariffs take effect. Among these are:
- Use hard-hitting devices when the power bill is at its cheapest
- Move to energy-saving LED lighting and appliances
- Make the house more energy-efficient so that heating/cooling loads are reduced
- Consider solar or battery options, especially if the excess power can be sold back to the grid
- Find out if the local government offers aid programs or discounts for low-income users
Also Read: SASSA Rule Update 2025: Revised Income Thresholds & Digital Review Explained