South Africans are set to face higher electricity costs from April, after the National Energy Regulator of South Africa (Nersa) approved a tariff increase for Eskom.

The power utility will implement an 8.76% increase for customers who purchase electricity directly from Eskom, effective from April 1.

Meanwhile, households supplied through municipalities will see their tariffs rise later in the year, with an average increase of 9.01% coming into effect from July 1.

The approved hike is higher than initially expected.

Nersa had first announced a 5.36% increase but later revised the figure to 8.76% after correcting calculation errors.

Looking ahead, electricity tariffs are also set to climb further in 2027, with an 8.83% increase now projected, up from the earlier estimate of 6.19% as the regulator phases in an additional R54b allocation to Eskom.

Eskom group chief financial officer Calib Cassim said that the utility is mindful of the financial strain on consumers.
He noted that Eskom aims to keep future tariff increases within reasonable bounds, acknowledging the pressure on both households and businesses.

Eskom spokesperson Daphne Mokwena emphasised that the increases are necessary to sustain the electricity supply.

She explained that the utility’s revenue requirements cover the costs of generating, transmitting and distributing electricity, while also supporting investment in critical infrastructure.

Despite the increases, some relief will remain for vulnerable groups.

Low-income households on the Homelight tariff will continue to benefit from subsidised rates, while rural customers will also retain subsidies due to the higher cost of electricity provision in those areas.

Operationally, Eskom has shown signs of improvement.

The utility reported an energy availability factor of 65.85% for the current financial year, with its generation fleet achieving performance levels of 70% or higher on 83 occasions.

Financially, Eskom recorded a pre-tax profit of R23.9b for the year ending March 2025, marking a significant turnaround from a R25.5b loss the previous year.

The electricity tariff hikes come amid further pressure on consumers, with fuel prices also expected to rise in April, adding to the cost-of-living burden.