- NERSA electricity price increase in October 2025 will see Eskom raise tariffs by 12.74% for direct customers, with municipalities following at 11.32%.
- The price hike marks a new era, ending block tariffs and introducing higher fixed charges for homes and businesses.
South Africans are preparing for another round of electricity price hikes. The National Energy Regulator of South Africa (NERSA) has approved major tariff adjustments for the 2025/26 financial year. The new rates will begin in April 2025 and reach full effect by October, when millions of homes and businesses will feel the impact.
Eskom remains under financial strain. The utility faces high operational costs, mounting debt, and ageing infrastructure. To address these challenges, NERSA approved new tariffs that reflect the real cost of generating and delivering electricity. The decision also aims to phase out long-standing subsidies that have distorted prices for years.
From October 10, 2025, Eskom’s direct customers will pay 12.74% more. Municipalities that buy bulk power from Eskom will increase their rates by 11.32%. These changes are part of a broader effort to make South Africa’s power sector more stable and sustainable.
NERSA will also scrap the block tariff system, which charges low-usage customers less per unit. Under the new flat-rate model, everyone will pay the same price for each unit consumed. As a result, many households will face higher monthly fixed charges, some rising by up to 88%.
Peak-hour pricing will extend to longer hours, while cheaper off-peak periods will shrink. The popular Sunday evening discount rate will also disappear. These changes will make it harder for families to manage their electricity budgets, especially low-income households that rely on free or subsidised power.
Consumers using less than 350 kWh per month may feel the impact most once existing support schemes end. Heavy users may see smaller unit rate increases but will pay higher fixed and peak-hour costs.
Businesses will also feel the pressure. Energy-intensive industries will experience varying impacts depending on their contracts and energy use. Many firms invest in solar power, efficient machinery, and smart meters to cut costs and improve resilience.
To reduce expenses, experts recommend that consumers:
- Run high-power appliances like washing machines during off-peak hours.
- Switch to LED bulbs and energy-efficient devices.
- Improve home insulation and explore solar or battery storage options.
The NERSA electricity price increase in October 2025 marks a turning point for South Africa’s power sector. It seeks to restore Eskom’s financial stability and promote reliable, sustainable energy. However, it also challenges citizens to use power smarter, adopt clean technologies, and take control of their energy use for a more secure future.