The price rise will result in a significant increase in South African electricity bills in 2025 for both residents and industries. NERSA, the National Energy Regulator of South Africa, will implement a new tariff structure based on Eskom’s Retail Tariff and Structural Adjustment (ERTSA) that will affect all users and the entire industry. Thus, the authority’s changes will not only influence the various user groups but will also have ramifications on the whole industry as they are embarking on a new path for electricity cost recovery.
Consumers to Pay More: The Rate Increase
As of October 10, 2025, NERSA will impose a 12.74% increase in Eskom’s tariffs that will be the first direct Eskom tariff hike after the previous one in September 2024. The municipalities that purchase bulk electricity from Eskom and later sell it to consumers will face an increase of 11.32%. Moreover, these rates will incorporate the earlier adjustment that took place in April 2025 when the same percentage of 12.74% was applied to the Eskom prices. As a result, although the conclusion of the entire process has often been perceived as a new “stepping point” in October 2025, a significant portion of the structural adjustment process was already set in motion at the very beginning of the financial year.
Shifts in the Tariff Structure
The reforms that came out in October do not only specify percentage increases but are definitely a more reasonable choice all the same. Different reforms have been introduced in the tariff system:
- One rate for all electric meters installation together with the elimination of block tariffs/declining block structure will eventually result in the abolishment of the cross-subsidization practice where the low-users paid less per unit.
- The rise of fixed monthly charges is expected; however, the standing charges for the majority of residential customers (those on Homepower/Homeflex tariffs) will experience a great hike, for example, up to an 88% increase in fixed fees.
Impact on Households, Businesses & Municipalities
- Households: The household consumers who use the least amount of electricity will suffer the most (for instance, 350 kWh a month or even less). If there are no block tariffs and fixed charges are very high, electricity could turn into a major part of their total expenses.
- Municipalities & Retailers : The municipalities selling energy to end-users will have to raise their prices more than before; that is, first, they will absorb the cost of the bulk purchase and then follow the increase limit set at 11.32%. This means that people living in some areas may end up paying a power bill that is even larger than the local tax that was imposed on top of the already increased rates.
- Businesses & Industry : The utility’s practice of applying the highest rates solely to the excess consumption of those who either have not made any agreement with or are on the same tariff as the utility will greatly affect large industries, trade, and the rest of the big energy consumers. On the other hand, the substantial part of the total operating costs that consists of high fixed and capacity charges as well as high peak rates remains. The cost pressures might even be more pronounced for the energy-intensive manufacturers who have already seen their margins squeezed as a result of high input costs and fierce competition in the market.
What Are The Consumer Options?
- At first point, tariffs and billing schemes: Your bill consists of fixed costs plus peak/off-peak rates that you must consider.
- Timing: Use the appliances during off-peak hours and do not consume too much power during the peak hours in the evening.
- Buy efficiency: LED lights, energy-efficient appliances, and good insulation will save you money and reduce the impact of the price hike.
- Solar/storage: Considering the registration fees and compliance costs that will be involved is important, so do not neglect that side of the issue.
- Participate in the inquiry: The market inquiry’s public consultations not only allowed individuals but also organizations to submit their evidence, data and feedback.
also read: SASSA 2025 Online Status Checker: Track Your Grant Application at sassa.gov