South Africa’s energy landscape is shifting and while Eskom has seen a period of improved performance, regulatory changes and tariff adjustments are reshaping the cost of power.

What has changed?
Reduced Loadshedding: On October 10, 2025, Eskom announced the country had gone 147 consecutive days without loadshedding. While this reflects a significant improvement, it’s not a permanent end to power cuts, and targeted “load reduction” can still occur in some areas.

Tariff Increase for 2025: NERSA approved a 12.74% average tariff increase for Eskom’s direct customers, which became effective on April 1, 2025. An 11.32% increase for municipalities took effect on July 1, 2025.

New Tariff Structure: Eskom and NERSA have begun overhauling the tariff structure. Inclining Block Tariffs (IBTs) have been removed for residential customers, meaning a flat rate per kWh is now in place. This move impacts low-consumption households, who previously paid less per unit.

Controversial R54 Billion Settlement: A behind-the-scenes settlement was reached in August 2025 to address a R54 billion revenue shortfall caused by NERSA’s calculation errors. This settlement would have resulted in additional tariff hikes for 2026 and 2027. However, lobby group AfriForum has temporarily blocked the deal in the Pretoria High Court due to a lack of public consultation and transparency.

What does this mean for the average South African?
For Households: The new tariffs and structural changes mean higher monthly electricity bills for many, especially those who use less power. This requires a re-evaluation of household energy consumption and budgeting.

For Businesses: Companies face rising input costs, which can increase operational expenses and potentially lead to higher prices for consumers, creating a knock-on effect throughout the economy.

For the Economy: The tariff hikes contribute to inflation, which can constrain consumer spending and hamper economic growth.

For the Power System: While the settlement and tariff hikes are meant to help stabilize Eskom’s finances and generation, the lack of transparency in the R54 billion deal has raised questions about regulatory accountability and the long-term affordability of electricity.

This is more than just a change in electricity costs; it impacts household budgets, business profitability, and the overall stability of the country’s economic future.