South African households and businesses are bracing for higher electricity bills as Eskom’s latest tariff hike takes effect starting 10 August 2025. This increase—approved by the National Energy Regulator of South Africa (NERSA)—is part of Eskom’s ongoing financial recovery strategy and will affect residents across all provinces, including Gauteng, Western Cape, KwaZulu-Natal (KZN), and others.
With inflationary pressures, operational costs, and aging infrastructure weighing on Eskom, the utility says the increase is necessary to ensure grid stability and service reliability. However, consumers are now left to face steeper electricity charges at a time when the cost of living is already at a multi-year high.
What Eskom’s Tariff Hike Means for Households
The new tariff structure reflects a nationwide average increase of 12.74%, although the exact amount per unit (kWh) varies depending on location, consumption level, and whether customers are on prepaid or postpaid plans. This rise comes after years of gradual increases, and it will most directly impact middle- and low-income households.
Key points to note about the 2025 electricity hike:
- Effective from 10 August 2025 for all residential and commercial users.
- Affects municipal and Eskom direct customers differently based on local surcharges.
- Lifeline users (low-income households using under 350kWh/month) face smaller hikes but still significant.
- Higher usage tiers will see steeper per-unit pricing and reduced inclining block subsidies.
New Electricity Tariffs by Province – August 2025
The table below shows the estimated per-unit (kWh) cost for residential users in major provinces, based on municipal and Eskom-direct billing:
| Province | Prepaid Users (c/kWh) | Postpaid Users (c/kWh) | Lifeline Tariff (c/kWh) | Notes |
|---|---|---|---|---|
| Gauteng | 298 | 310 | 186 | Includes City Power surcharges |
| Western Cape | 276 | 288 | 178 | Cape Town municipal customers affected |
| KwaZulu-Natal | 282 | 295 | 182 | eThekwini and rural customers included |
| Eastern Cape | 274 | 285 | 176 | Large rural base; lower baseline charges |
| Limpopo | 268 | 278 | 172 | Minimal urban loading, mostly rural users |
| North West | 270 | 281 | 175 | Moderate increase from July rates |
| Mpumalanga | 272 | 283 | 174 | High Eskom-direct coverage |
| Free State | 273 | 284 | 176 | Flat-rate structure in smaller towns |
| Northern Cape | 271 | 280 | 175 | Sparsely populated; higher distribution fees |
Note: Tariff figures are approximate and subject to rounding or municipal adjustments.
Why Are Tariffs Increasing Again?
Eskom has cited several key reasons for the August 2025 increase:
- Infrastructure Maintenance: Eskom is investing heavily in maintaining and upgrading aging power stations.
- Load Shedding Recovery: Costs related to diesel-powered generation and emergency repairs continue to rise.
- Debt Repayment: The utility is still servicing more than R400 billion in legacy debt.
- Municipal Non-Payment: Many municipalities owe Eskom billions, prompting the utility to shift the financial burden.
- Inflation & Currency Pressure: The weakening rand and rising input costs are also pushing tariffs upward.
According to Eskom, these increases are aligned with NERSA’s Multi-Year Price Determination (MYPD) framework, although consumer advocacy groups have challenged the size and frequency of the hikes.
How the New Tariffs Compare to Previous Years
Here’s a table comparing residential electricity tariffs over the past three years for average prepaid users:
| Year | Gauteng (c/kWh) | Western Cape (c/kWh) | KZN (c/kWh) | National Avg. (c/kWh) |
|---|---|---|---|---|
| 2023 | 238 | 222 | 229 | 230 |
| 2024 | 265 | 249 | 254 | 250 |
| 2025 (Aug) | 298 | 276 | 282 | 278 |
This reflects a 25% increase in Gauteng since 2023 and roughly a 21% increase nationally in just two years.
Who Is Most Affected by the August 2025 Tariff Hike?
Province-Wise Electricity Tariff Rates per kWh – Effective from 1 August 2025
| Province | Previous Rate (c/kWh) | New Rate (c/kWh) | Approx. Increase (%) |
|---|---|---|---|
| Gauteng | 150 | 162 | ~8.0% |
| Western Cape | 145 | 157 | ~8.3% |
| KwaZulu‑Natal | 148 | 160 | ~8.1% |
| Eastern Cape | — | — | — |
| Limpopo | — | — | — |
| Free State | — | — | — |
| Mpumalanga | — | — | — |
While all consumers will feel the pinch, the groups most vulnerable to this increase include:
- Low-income families relying on electricity for cooking and heating.
- Small businesses operating in informal settlements or townships.
- Pensioners and fixed-income households on municipal postpaid plans.
- High-usage households now paying premium rates above 600 kWh/month.
- Prepaid users who top up multiple times per month and receive fewer units per rand.
Eskom maintains that block-based tariffs and free basic electricity for qualifying households are still in place, but beneficiaries must remain below strict usage thresholds to qualify.
Tips to Manage Your Electricity Usage and Bill
With electricity now consuming a bigger share of household budgets, energy conservation becomes more essential than ever. Here are actionable tips to help reduce monthly bills:
- Switch to LED bulbs – Use up to 80% less electricity than standard lights.
- Unplug appliances – Avoid standby power consumption from TVs, microwaves, etc.
- Install geyser timers – Reduce usage during peak billing hours.
- Use smart plugs – Schedule devices to shut off when not in use.
- Limit heater use – Consider blankets and hot water bottles in winter months.
- Cook with gas – More cost-effective than electric stoves long term.
Many municipalities also offer home energy audits or load calculators online to help estimate usage and identify waste.
How to Confirm Your Tariff and Usage Band
To avoid surprises on your bill, you should:
- Check your statement from the municipality or Eskom (for direct users).
- Use Eskom’s online tariff calculator to estimate what you’ll pay based on consumption.
- Visit your local municipality’s website for any additional surcharges or fees.
- Check your block pricing tier—you may be in a higher usage band if you consume more than 350 or 600 kWh/month.
- Log into your prepaid meter or mobile app to track consumption in real-time.
Understanding your usage is the first step to better managing your costs under the new pricing model.
The 12.74% increase in electricity tariffs from 10 August 2025 is the latest in a series of adjustments meant to stabilize Eskom’s finances, but it also places a growing burden on South African households and businesses. While Eskom continues to battle infrastructure decay and financial strain, consumers must now dig deeper to afford a basic necessity.
The good news is that awareness, conservation, and smart planning can help soften the blow. Take the time to understand your tariff, review your usage, and apply practical measures to keep your monthly expenses under control.
Frequently Asked Questions (FAQs)
Q1: When do the new Eskom electricity tariffs take effect?
A: The new tariffs come into effect on 10 August 2025 across all provinces.
Q2: Will everyone pay the same per-unit rate?
A: No. Rates vary by province, municipality, consumption tier, and whether you are on a prepaid or postpaid plan.
Q3: How can I find out what my specific tariff is?
A: You can check your electricity bill, contact your local municipality, or visit Eskom’s tariff calculator online.
Q4: Are there any exemptions or free electricity plans?
A: Lifeline customers may qualify for free basic electricity (50–60 kWh/month), but they must meet income and usage criteria.
Q5: What happens if I use more than the free allowance?
A: You will be charged based on the standard block tariff, with higher usage blocks costing more per unit.
Q6: Can I appeal or challenge the new tariffs?
A: Tariff increases are regulated by NERSA, and appeals can be submitted through public participation or legal challenge processes, but individual exemption is unlikely.
Q7: How much more will the average household pay per month?
A: Depending on usage, households could pay R80–R250 more monthly under the new rates.
Q8: Are prepaid users better off than postpaid?
A: Prepaid users can better control their consumption but may receive fewer units per rand as block rates increase.
