ELECTRICITY TARIFF HIKE HITS CONSUMERS FROM TODAY

Wed 02 July 2025:

Double-digit increases will see monthly bills rise by hundreds of rands, placing further strain on already squeezed household budgets.

South African households will face significantly higher electricity costs from today, 1 July 2025, as municipalities across the country implement annual tariff increases, with some metros seeing hikes of over 13%. This winter price shock, approved by the National Energy Regulator of South Africa (Nersa), will add between R245 and R334 to the average monthly electricity bill, intensifying the financial pressure on consumers.

The increases are a result of municipalities applying their own mark-ups on top of the 11.32% wholesale price rise granted to Eskom earlier this year. These adjustments are intended to cover operational costs, mounting municipal debt, and infrastructure maintenance. The new electricity tariff hike comes at a particularly challenging time, as colder weather naturally drives up household energy consumption for heating, creating a double financial blow for ordinary citizens.

For instance, residents in Ekurhuleni face the highest average increase at 13.40%, which translates to an additional R330 per month for a typical household. Cape Town and Gqeberha (Port Elizabeth) are not far behind, with approved increases of 12.80%, potentially adding R334 and R308 to their respective monthly bills. In Johannesburg, City Power customers will see an average increase of 12.41%, costing them an extra R273 per month.

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Impact on Household Affordability

This latest electricity tariff hike compounds the affordability crisis for many South Africans. With the cost of a basic household food basket already showing a year-on-year increase, the rise in utility costs forces families to make difficult choices. The additional expense on electricity directly competes with other essential spending, such as food, transport, and hygiene products.

While some relief measures are in place, they are limited. In Johannesburg, City Power spokesperson Isaac Mangena confirmed that indigent households are exempt from certain service and network charges, providing some protection for the most vulnerable. “The residential prepaid low tariff is designed to basically support indigent customers who remain exempt from paying the R70 service charge and also R130 network capacity charge,” Mangena stated.

However, for the majority of working- and middle-class families, the substantial increase in their monthly bills is unavoidable. The final electricity tariff hike underscores a persistent upward trend in living costs, pushing consumers to explore drastic energy-saving measures, from switching to LED lighting and installing geyser timers to considering long-term investments like solar power to mitigate the financial impact.