Eskom 36% electricity price increase plan

Eskom has asked the National Energy Regulator of South Africa (Nersa) for a 36.15% electricity tariff hike for its direct customers, which would see Homepower 4 customers pay up to R2,542 more monthly.

This figure varies based on the customer’s tariff and average monthly electricity consumption.

In addition to the sky-high increase for its direct customers, Eskom has reportedly asked the regulator for a 43.55% price hike for municipal power customers.

This was revealed in a confidential draft document seen by Daily Maverick, which provided details about Eskom’s proposed tariff hikes from 2026 to 2028.

These include a tariff hike for non-municipal customers of 36.15% for 2025/26, 3.36% in 2026/27, and 11.07% in 2027/28.

Municipal power customers could see increases of 43.55% in 2025/26, 3.36% in 2026/27, and 11.07% in 2027/28.

The first set of municipal increases would be implemented on 1 July 2025, while the first set for Eskom direct customers would kick in on 1 April 2025.

The draft document was the first step in the application process, and Eskom’s request will be subject to extensive public comment and hearing processes.

Through its requested price adjustments, the state-owned power utility hopes to generate revenue of R446 billion, R495 billion, and R537 billion in 2026, 2027, and 2028, respectively.

It blamed delays in implementing South Africa’s renewable energy programme, which has put it under pressure to increase generation capacity.

The tariffs Nersa approves will likely differ from Eskom’s proposal. It approved a price hike of only 12.65% for 2024/25.

MyBroadband calculated how much more Eskom direct customers on its Homepower tariffs would pay per month if Nersa were to approve the tariff hikes.

Currently, all four Homepower tariffs are charged at R2.82 per kilowatt-hour (kWh), including VAT, for Block 1 customers.

Eskom splits its Homepower tariffs into two blocks. Block 1 customers consume less than 600kWh per month.

With the proposed 36.15% tariff adjustment, this rate would increase to R3.84 per kWh.

It charges a higher rate for Block 2 customers or those consuming more than 600kWh per month.

Most of Eskom’s direct residential customers are on the Homepower 4 tariff, which is designed for households with single-phase 16kVA (80A) connections.

Those consuming more than 600kWh per month are currently charged R4.54 per kWh. With Eskom’s proposed adjustment, this would increase to R6.18 per kWh.

All Homepower customers must also pay a fixed network capacity fee, which is charged per day.

For the duration of the 2024/25 financial year, Homepower 4 customers will pay R7.39 per day or R221.70 per month.

If Eskom’s adjustment of 36.15% is approved, this fixed charge will increase to R10.06 per day or R301.84 per month.

Considering the changes to both the consumption and capacity charges, an Eskom Homepower 4 customer that consumes 900kWh per month on average will see their bill increase by R1,557.23.

Heavy consumers that use 1,500kWh per month will see their bills increase by R2,541.96 per month.

The more conservative Homepower 4 users, who use only 450kWh or 600kWh per month on average, will pay about R538.89 and R1.064.87 more, respectively.

The tables below show how Eskom’s proposed 36.15% electricity tariff hike will impact Homepower users with varying consumption levels if approved for 2025/26.

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Low power users — 450kWh and 600kWh per month

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Heavier power users — 900kWh, 1,200kWh, and 1,500kWh per month