Understanding Eskom’s proposed power price hike and its impact on households in South Africa

Everyone in South Africa is talking about their electricity bills because the cost of living is already so high, and that is why many people want to know about eskom proposed power price hike. This massive increase which Eskom has asked for is not just a small change, but a big jump that could see our electricity prices go up by more than 36% in the next year. People are very worried because even though we have seen less loadshedding lately, the thought of paying so much more just to keep the lights on is scary for many families and small business owners across the country.

Key details about the electricity increase

• The power utility, Eskom, has submitted a plan called the Multi-Year Price Determination (MYPD6) to the National Energy Regulator of South Africa (NERSA).
• Eskom is asking for a 36.15% increase for the first year, which would start on 1 April 2025 for people who buy electricity directly from them.
• If you get your electricity from your local municipality, the increase could be as high as 43.55% starting from 1 July 2025.
• The plan covers three years, with Eskom asking for another 11.81% in 2026 and 9.10% in 2027.
• The Minister of Electricity and Energy, Kgosientsho Ramokgopa, has spoken out saying that “energy poverty” is a real problem and that many South Africans simply cannot afford these prices.
• Dan Marokane, the CEO of Eskom, and Calib Cassim, the CFO, say the money is needed to cover the costs of making electricity, maintaining old power stations, and paying back the huge debts the company has.
• NERSA is currently holding public hearings where ordinary citizens and groups can have their say before a final decision is made.

The full story behind the numbers

The whole issue started when Eskom sent their official application to NERSA to ask for more money from consumers. They say they need about R445 billion for the 2025/26 financial year to keep running properly. According to Eskom, the reason the eskom proposed power price hike is so high is because they are moving towards “cost-reflective” tariffs. This means they want the price we pay to actually match what it costs them to produce the power, including the expensive diesel they sometimes use and the repairs for the coal plants.

However, the South African public is not happy at all. Many people feel that they are being punished for the years of corruption and mismanagement that happened at Eskom. Even though the lights have been on for many months now, the price of that stability seems to be coming out of our pockets in a way that many cannot handle. You can find more updates on similar stories by visiting our trending news page which follows these national topics closely.

The government is also in a difficult position. On one side, they need Eskom to be financially healthy so it doesn’t need more bailouts from taxpayers’ money. On the other side, the Minister of Electricity has admitted that if electricity becomes too expensive, people will just stop paying or find ways to bypass meters, which makes the problem worse. Organizations like Salga (South African Local Government Association) and various business groups are also fighting against this hike, saying it will kill jobs and make it impossible for poor people to survive. You can read more about the formal process on the NERSA official website to see how the hearings are going.

Questions you might have about the price hike

When will the new prices start?

If NERSA approves the plan, the new prices for Eskom direct customers will start on 1 April 2025, while people who buy from municipalities will see the change on 1 July 2025.

Is the 36% increase already a final decision?

No, it is not final yet. Eskom has only made the request. NERSA has the power to look at the books and decide if Eskom really needs that much or if they should get a much smaller increase.

Why is the municipal increase higher than the Eskom one?

Municipalities have a different financial year that starts in July. Their increase is often higher because it includes the Eskom hike plus the extra costs the local council adds to maintain local wires and substations.

What is “energy poverty” that the Minister mentioned?

Energy poverty is when a household cannot afford enough electricity to meet their basic needs like cooking, heating, and lighting, even if the electricity is available in their area.

Can I do anything to stop this hike?

Yes, NERSA holds public consultations. You can send written comments or attend the public hearings in your province to tell the regulator how this increase will affect your life and your budget.

Does this mean loadshedding is coming back?

The price hike is about money, not necessarily about the power supply. Eskom says the money will actually help them keep the grid stable so that we don’t have to go back to the dark days of loadshedding.