• The incoming tariffs hike from Eskom has been approved from NERSA, coming into effect from 1st April 2025.
• Direct Eskom customers will be paying around 25 cents more for the same kWh they would have purchased previously.
• The announcement comes as Eskom warns of impending Stage 4 blackouts.

The National Energy Regulator of South Africa (NERSA) has approved the incoming Eskom electricity tariff hike, but cut it down considerably and added a few caveats. Though the end goal remains the same – South Africans will be paying more and soon.

According to an announcement from NERSA, the application for a 36 percent tariff increase for Eskom from April 2025 was cut down to a 12.7 percent increase this year, 5.36 percent next year and 6.19 percent the year after that.

From April 2025, customers that purchase directly from Eskom will see the standard tariff rise from 195.95 c/kWh to 220.92 c/kWh, which means you will have to pay nearly 25 cents more for the same amount of kWh you purchased previously.

This will increase again next year and the year after.

Eskom initially launched the application for the hike as the entity is bleeding money and fast, and while it has managed to cut down on losses in the last year, it still lost R55 billion in 2023.

NERSA says it had to weigh up Eskom’s request for more money to keep the lights on and the ability of South Africans to afford payments when making the decision on the tariffs.

“The Energy Regulator recognises the challenges faced by consumers and the importance of ensuring that electricity remains affordable, while also securing Eskom’s financial sustainability. This decision, which is substantially lower than Eskom’s application, will have a positive impact on the South African economy, and a significantly lower impact on consumers,” it explained.

“We believe that this decision strikes a necessary balance between the needs of Eskom and the financial realities of consumers. We appreciate the contributions from all stakeholders during this process and look forward to continuing our engagements as we work towards a sustainable energy future for South Africa,” added NERSA chair, Thembani Bukula.

The announcement from NERSA comes as Eskom publishes its interim results for the period to 30th September 2024, showing a miraculous profit of R16 billion in the first six months of last year. It only made R2 billion in profit for the same period in 2023 and shows that the gears are turning at Eskom and turning fast.

Unfortunately the utility also announced on Friday the possibility of the return of loadshedding to Stage 4 over the weekend as Eskom power stations have suffered a number of breakdowns in recent days that require extended repair time, accompanied with the need to replenish emergency backup supplies.

“This has necessitated the use of all our emergency reserves which now need to be replenished. Consequently, we are closely monitoring he status of our current emergency reserves and loadshedding up to Stage 4 may be implemented over the weekend,” Eskom’s group chief executive Dan Marokane said on Friday morning.