The state of South Africa will undergo major new rules and tariff adjustments in electricity, starting November 1, 2025, due to the National Energy Regulator of South Africa (NERSA) and the restructuring plans of Eskom. These new regulations will help increase cost recovery, make power usage more efficient, and help to use electricity in a more sustainable manner in the context of the current supply issues and the increased costs of operations.
Key Changes and Impacts
– Electricity Tariff Hike: Eskom has announced a tariff rise of about 12 percent to direct customers starting November 1, 2025, and which is likely to follow the history of small annual increases to deal with debt and infrastructure expenses.
– Smart Meter Rollout: The compulsory usage of smart meters will start, and the real-time usage of consumption and precise billing to prevent wastage will be provided and enhance grid management.
– Tariff Structure Overhaul: Elimination of Inclining Block Tariffs (IBTs), which gave high tariffs with high use. Rather it will be a fixed rate of a kWh to most residential customers.
– Fixed Monthly Charges: They will become much higher, particularly concerning households which use less, as the fixed monthly charges in some tariffs will grow by 88%.
– Tariff Adjustments based on Time of Use: There will be a reorganization of the peak and off-peak timewindows (longer evening peak rates, shorter morning peak periods so that the demand can be reflected better and so that the load can be shifted) to promote load shifting.
– Solar PV and Battery Fees Regulation: New registration and compliance fees affecting homeowners and installers in relation to solar photovoltaic systems and battery storage installations.
Consumer Advice
– The consumers are encouraged to be watchful of electric power usage to control the expenditure under the new tariff regime.
– Registration of Free Basic Electricity (FBE) is essential to allow qualified and low-income families to receive discounted or free monthly electricity.
– Electricity tokens should be legally bought through the vendors who are approved to prevent theft and punishment.
– Appliances and behavioral modifications that are energy efficient will allow mitigating the effects of increased charges.
| Aspect | Change |
|---|---|
| Tariff Increase | ~12% for Eskom direct customers |
| Metering | Mandatory smart meter rollout |
| Tariff Structure | Flat rate per kWh replacing IBTs |
| Fixed Charges | Up to 88% increase for low users |
| Time of Use Tariffs | Restructured peak and off-peak periods |
| Solar/Battery Fees | New registration and compliance fees |
FAQs
Q1: Why has the electricity tariff gone up?
The growth aids Eskom to meet the operational expenses, maintenance of infrastructure, and to lessen the debt.
Q2: What is the effect of the flat rate tariff on the electricity bills?
Flat rate is easier to bill but can raise expenses among low-consumption households who were having an advantage of IBTs.
Q3: Are there any new fees against the owners of solar panels?
They are on the new registration and compliance costs of solar PV and battery storage, which are implemented to regulate installations.
