Electric Bills Set to Rise as Eskom Rolls Out New Tariff Increases

Electricity Costs to Rise This Week

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Eskom is set to adjust its electricity prices this week, adhering to the new rates sanctioned by the National Energy Regulator of South Africa (NERSA) last December. Consumers can expect an increase between 12.72% and 12.74%, marking a significant uptick in utility bills.

Detailed Increase Breakdown:

• Local Authority Tariffs: For the period 1 July 2024 to 30 June 2025, rates will rise by 12.72%.
• Direct Eskom Customers: From 1 April 2024 to 31 March 2025, a general increase of 12.74% will apply, inclusive of the Homelight 20A tariffs.
• Notable Surge in Affordability Subsidy Charge: Set at a steep 25.24%, this charge supports the Homelight 20A tariff, impacting key industrial and urban tariffs to an average of 13.29%.

Behind the Numbers: The affordability subsidy charge, specifically aimed at easing the Homelight 20A tariff’s financial burden, accounts for the slightly higher average increase. This mechanism reflects NERSA’s approach to balance tariff structures, ensuring sustained support for lower-income brackets while adjusting overall pricing to meet Eskom’s operational needs.

Looking Ahead: While the 2024/25 period will not see structural tariff changes, Eskom hints at a potential restructuring proposal aimed at 2025/26, signaling ongoing adjustments to align with economic realities and regulatory guidelines.

As South Africans brace for the financial impact of these increases, Eskom’s commitment to transparently applying NERSA’s determinations underscores the delicate balance between maintaining service standards and ensuring affordability across its diverse customer base.