{"id":603874,"date":"2025-07-25T11:54:50","date_gmt":"2025-07-25T09:54:50","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=603874"},"modified":"2025-07-25T11:54:57","modified_gmt":"2025-07-25T09:54:57","slug":"eskom-electricity-price-emergency","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/energy\/603874-eskom-electricity-price-emergency.html","title":{"rendered":"Eskom electricity price emergency"},"content":{"rendered":"\n<p>South Africa&#8217;s residential electricity tariffs are substantially higher than the global average \u2014 and smaller power users are paying far more per kilowatt-hour of electricity than heavy power users. <\/p>\n\n\n\n<p>According to <a href=\"https:\/\/www.globalpetrolprices.com\/electricity_prices\/\" data-type=\"link\" data-id=\"https:\/\/www.globalpetrolprices.com\/electricity_prices\/\" target=\"_blank\" rel=\"noreferrer noopener\">GlobalPetrolPrices.com,<\/a> South Africa&#8217;s average electricity tariff was roughly R3.71 per kWh in December 2024. At that time, R3.71 converted to about $0.211. <\/p>\n\n\n\n<p>At that rate, South Africa&#8217;s tariffs were already 31.91% higher than the world&#8217;s average of $0.16 and 66.52% higher than the average tariff across Africa.<\/p>\n\n\n\n<p>In addition, the analysis found that the prices paid by lower-consumption households were 75.41% higher than those of high-consumption households.<\/p>\n\n\n\n<p>This gap has likely grown since Eskom implemented its retail tariff plan in April 2025. The new pricing structure includes significant increases in fixed charges. <\/p>\n\n\n\n<p>Eskom&#8217;s 12.74% &#8220;average&#8221; tariff hike is based on consumption of nearly 700kWh per month, much higher than small middle-class households typically consume. <\/p>\n\n\n\n<p>With the substantial increase in fixed charges, households with lower monthly electricity consumption, are seeing much higher hikes on their monthly bills. <\/p>\n\n\n\n<p>For example, the Electricity Resellers Association of South Africa said its average customer in sectional title schemes is paying around 30% more.<\/p>\n\n\n\n<p>Conversely, households using above-average energy have seen their bills increase by less than Eskom&#8217;s average. <\/p>\n\n\n\n<p>GlobalPetrolPrices has yet to update its publicly available South African pricing with the latest available data.<\/p>\n\n\n\n<p>Its global average electricity tariff has risen roughly 3.75% to 0.166 US cents by the second quarter of 2025.<\/p>\n\n\n\n<p>If Eskom&#8217;s 12.74% increase was applied directly to the R3.71 from December 2024, the price per kWh increases to R4.18.<\/p>\n\n\n\n<p>That converts to about $0.234 with the exchange rate in June 2025, making South Africa&#8217;s electricity about 41.14% more expensive than the global average. <\/p>\n\n\n\n<p>Eskom&#8217;s own average electricity tariff currently stands at R2.12. However, this includes all customers, including industrial customers with preferential pricing costing a fraction of residential fees. <\/p>\n\n\n\n<p>Even so, the number has increased far above inflation since around 2007, when South Africa first experienced load-shedding.<\/p>\n\n\n\n<p>Had Eskom&#8217;s price increases over the past decade been aligned with inflation, the &#8220;official&#8221; average tariff would be R1.23 per kWh, around 60% more than in 2015.<\/p>\n\n\n\n<p>Instead, it has increased to R2.12, which is roughly 177% higher than a decade ago. <\/p>\n\n\n\n<p>The table and graph below summarise how Eskom&#8217;s average electricity tariff has increased and where it should have been if aligned with inflation. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\" class=\"has-fixed-layout\"><thead><tr><th>Year<\/th><th>Average tariff (c\/kWh)<\/th><th>Aligned with inflation <br>(1 April 2015 as base date)<\/th><\/tr><\/thead><tbody><tr><td>2015<\/td><td>76.41<\/td><td>76.41<\/td><\/tr><tr><td>2016 <\/td><td>82.53<\/td><td>81.10<\/td><\/tr><tr><td>2017 <\/td><td>89.13<\/td><td>85.43<\/td><\/tr><tr><td>2018<\/td><td>93.79<\/td><td>89.29<\/td><\/tr><tr><td>2019<\/td><td>106.80<\/td><td>93.26<\/td><\/tr><tr><td>2020<\/td><td>110.93<\/td><td>93.02<\/td><\/tr><tr><td>2021<\/td><td>128.27<\/td><td>100.24<\/td><\/tr><tr><td>2022<\/td><td>140.59<\/td><td>106.13<\/td><\/tr><tr><td>2023<\/td><td>166.82<\/td><td>113.35<\/td><\/tr><tr><td>2024<\/td><td>188.07<\/td><td>119.25<\/td><\/tr><tr><td>2025<\/td><td>212.03<\/td><td>122.62<\/td><\/tr><tr><td><strong>Total increase<\/strong><\/td><td><strong>+177.49%<\/strong><\/td><td><strong>+60.48%<\/strong><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/07\/Average-electricity-tariffs-in-South-Africa-\u2014-2015-to-2025@2x-1200x675.png\" alt=\"\" class=\"wp-image-603963\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/07\/Average-electricity-tariffs-in-South-Africa-\u2014-2015-to-2025@2x-1200x675.png 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/07\/Average-electricity-tariffs-in-South-Africa-\u2014-2015-to-2025@2x-600x338.png 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/07\/Average-electricity-tariffs-in-South-Africa-\u2014-2015-to-2025@2x-768x432.png 768w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/07\/Average-electricity-tariffs-in-South-Africa-\u2014-2015-to-2025@2x-1536x864.png 1536w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/07\/Average-electricity-tariffs-in-South-Africa-\u2014-2015-to-2025@2x-2048x1152.png 2048w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Eskom&#8217;s fall from grace<\/h2>\n\n\n\n<p>South Africa&#8217;s electricity pricing situation is especially distressing when considering Eskom&#8217;s proud history, including boasting the cheapest tariffs in the world during the 1990s and early 2000s.<\/p>\n\n\n\n<p>Tariff increases were lower than or in line with inflation for many years after the country became a democracy, despite the substantial expansion of electricity infrastructure.<\/p>\n\n\n\n<p>In 2001, Eskom won the global power company of the year. By 2003, the country was producing almost double the electricity per capita of the global average. <\/p>\n\n\n\n<p><a href=\"https:\/\/sahistory.org.za\/article\/short-history-eskom-part-1-1923-2001#_ftnref74\" data-type=\"link\" data-id=\"https:\/\/sahistory.org.za\/article\/short-history-eskom-part-1-1923-2001#_ftnref74\" target=\"_blank\" rel=\"noreferrer noopener\">Experts surmise<\/a> the utility&#8217;s problems began when the South African government failed to heed recommendations in the 1998 White Paper on Energy that generating capacity must be expanded.<\/p>\n\n\n\n<p>Under pressure from trade unions, the government also disregarded a recommendation in the paper that Eskom must be unbundled into three separate entities and privatised. <\/p>\n\n\n\n<p>The 2001 Eskom Conversion Act weakened the power utility by reducing its autonomy and increasing its exposure to political influence. <\/p>\n\n\n\n<p>While the entity was previously state-owned, the government adopted an &#8220;arms-length&#8221; approach that enabled Eskom to operate with some measure of independence.<\/p>\n\n\n\n<p>According to UCT researchers, the Act reduced Eskom engineers&#8217; decision-making powers and resulted in managers being appointed through &#8220;cronyism&#8221; and &#8220;political entryism.&#8221;<\/p>\n\n\n\n<p>It took many years of load-shedding, exorbitant electricity prices, and Eskom bailouts for the government to revisit the unbundling, which President Cyril Ramaphosa confirmed would happen in his first state of the nation address in 2019.<\/p>\n\n\n\n<p>Energy experts are optimistic that separating Eskom&#8217;s generation, transmission, and distribution businesses and deregulating the electricity market will bring electricity tariffs under control. <\/p>\n\n\n\n<p>However, it will not undo the tens of trillions of rand in economic damage that load-shedding alone has caused since 2007, not factoring in the negative impact of above-inflation electricity price hikes. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa&#8217;s residential electricity tariffs are substantially higher than the global average \u2014 and smaller power users are paying far more per kilowatt-hour of electricity than heavy power users. <\/p>\n","protected":false},"author":341042,"featured_media":588224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27995],"tags":[13871,28392,59903,181,81907],"class_list":["post-603874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-electricity2","tag-electricity-prices","tag-electricity-tariffs","tag-eskom","tag-globalpetrolprices-com"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/603874"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=603874"}],"version-history":[{"count":19,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/603874\/revisions"}],"predecessor-version":[{"id":604026,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/603874\/revisions\/604026"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/588224"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=603874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=603874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=603874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}