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NERSA Tariff Changes
South Africa | Publication | June 2025
From 1 April 2025, Eskom implemented a 12.74% electricity tariff increase for direct customers, with municipalities seeing an 11.32% rise from 1 July 2025. This was announced following the approval of the Eskom Retail Tariffs and Structural Adjustment (ERTSA) application. This is part of a broader structural overhaul approved by the National Energy Regulator of South Africa (NERSA) to improve cost recovery and grid sustainability.
The NERSA tariff changes include, but are not limited to:
Inclining Block Tariffs (IBTs) will be removed, meaning all residential customers on Eskom Homelight and Homepower tariffs will pay a flat rate per kWh, reducing cross-subsidies from larger to smaller customers.
Fixed monthly charges for residential customers on Eskom’s Homepower 4 and Homeflex 4 tariffs will increase by 88%, impacting smaller customers the hardest.
Changes to time-of-use tariffs include shorter morning peak periods, extended peak evening peak periods, and a shift from off-peak to standard tariff rates on Sunday evenings from 18:00 to 20:00.
Eskom is introducing registration and compliance fees for solar PV and battery energy storage systems, raising concerns among installers and homeowners.
The new tariff structure aims to ensure equitable cost recovery, eliminate unintended cross-subsidies, and facilitate the integration of alternative energy sources.
Large industry, mining, commercial, and rural customers will experience overall reduction in fixed charges and winter energy time-of-use prices.
Eskom encourages residential customers to purchase legal electricity tokens and register for Free Basic Electricity (FBE) to enjoy lower electricity prices provided by the government.
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