The National Energy Regulator of South Africa (NERSA) has approved an electricity price increase that will take effect from April 2025, directly impacting consumers and municipalities.
NERSA confirms Eskom prices set to increase in April 2025
The decision, made during a meeting on Tuesday, 11 March 2025, will see a 12.74% tariff hike for Eskom direct customers and an 11.32% increase for municipalities that purchase electricity from Eskom.
For Eskom direct customers, the price adjustment will apply from 1 April 2025 to 31 March 2026, while municipal customers will experience the increase from 1 July 2025 due to differences in financial year cycles.
According to NERSA, the tariff adjustments are based on the sixth Multi-Year Price Determination (MYPD6) revenue allocation process, which allows Eskom to recover costs across different customer categories.
NERSA stated that the approved increase was based on various factors, including:
- Public feedback on Eskom’s Retail Tariff Plan (RTP)
- A long-term strategy to address cross-subsidies
- The company’s financial situation and revenue recovery requirements
NERSA assured that the Reasons for Decision (RfD) document detailing the rationale behind the tariff adjustments will be published on its website in due course.
What you must know about the new Eskom Debt Relief Amendment Bill
Alongside the tariff hike, the South African government has introduced amendments to the Eskom Debt Relief Act, 2023, which aims to assist Eskom in managing its financial burden.
Initially, as explained by Finance Minister Enoch Godongwana during his 2025 Budget Speech,
Eskom was set to receive R70 billion in debt relief under the original agreement. However, due to financial improvements at Eskom, the latest amendment reduces the amount to R40 billion for the 2025/26 financial year and R10 billion in 2028/29, resulting in a government saving of R20 billion.
The Eskom Debt Relief Amendment Bill, 2025, which was tabled in Parliament, proposes that the relief funds be structured as a convertible loan that could later be transformed into equity if Eskom meets specific conditions.
The amendment seeks to:
- Adjust Eskom’s financial support for 2025/26 and 2028/29
- Reduce government exposure to Eskom’s financial risks
- Ensure Eskom’s financial sustainability without excessive reliance on state bailouts
How the changes impact South Africans
The combination of the tariff hike and the debt relief plan means South African taxpayers and electricity consumers will continue to feel the financial strain.
Households and businesses must prepare for higher electricity bills, while the government aims to prevent further financial instability at Eskom through structured financial intervention.
The tariff increase and debt relief plan are key components of South Africa’s ongoing strategy to stabilise Eskom, which has long been burdened by financial mismanagement and operational inefficiencies.
However, public concerns remain about the affordability of electricity and whether Eskom’s long-term restructuring will bring relief to consumers.
The Eskom tariff increases will take effect in April 2025 for direct customers and in July 2025 for municipalities.
