Upcoming Adjustments to Eskom’s Electricity Prices for 2024/25
Eskom has announced an imminent electricity price hike of 12% for the 2024/25 fiscal year, set to take effect on Monday, April 1st.
In a bid to adjust its pricing structure and address financial challenges, Eskom submitted its Retail Tariff and Structural Adjustment Application (ERTSA), along with a detailed Schedule of Tariffs, to the National Energy Regulator of South Africa (NERSA) in October 2023. These submissions were for the period spanning April 1, 2024, to March 31, 2025.
After careful consideration, NERSA has approved the proposed tariff increases. These adjustments will be applicable to Eskom’s direct customers beginning April 1, 2024, and to the tariffs charged to local authorities, including municipalities, starting July 1, 2024. The approved increases are detailed as follows:
For Eskom Direct Customers (April 1, 2024, to March 31, 2025): All tariff charges, with the exception of the affordability subsidy charge, will see an increase of 12.74%. The affordability subsidy charge itself will be raised by 25.24%.
For Local Authorities (July 1, 2024, to June 30, 2025): Tariff charges will experience an increase of 12.72%.
Eskom has also highlighted that the average increase for key industrial and urban tariffs will be approximately 13.29%. This is primarily due to the increase in the affordability subsidy charge, which is designed to support the Homelight 20A tariff. The affordability subsidy charge, determined by NERSA, aims to balance historically lower increases in the Homelight 20A tariff. It is primarily funded by non-municipal large industrial and urban customers.
While the 2024/25 fiscal year will not witness any structural changes to the tariff system, Eskom is contemplating a proposal for tariff restructuring for the 2025/26 period to NERSA.
This adjustment in electricity tariffs underscores the ongoing challenges faced by Eskom and highlights the importance of exploring alternative energy solutions. As energy costs continue to rise, the pursuit of sustainable and cost-effective energy alternatives becomes even more crucial for both households and businesses alike.
