No April fools joke as Eskom set to hike electricity by 12%

While some may think it’s an April fool’s joke, it’s not. There is more bad news for consumers on the horizon, with Eskom confirming the 12% electricity price increase for the 2024/25 financial year will kick in on April 1.

The electricity price hike kicks in just two day before the petrol price increase announced by the Energy Department this week which is expected to have a deep impact on consumers pockets.

Eskom said it approached the National Energy Regulator of South Africa (NERSA) in October last year  for the approval of its Retail Tariff and Structural Adjustment Application (ERTSA) and the Schedule of Tariffs for the period from 01 April 2024 to 31 March 2025.

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Tariffs

The parastatal said in December last year, Nersa determined the tariff increase for 2024/25, applicable to its direct customer tariffs from 01 April 2024, and to Eskom’s tariffs for local authorities (municipalities) from 01 July 2024 as follows:

• Local authority tariff charges — July 1 2024 to June 30 2025: 12.72%;
• Eskom direct customers — April 1 2024 to March 31 2025:
  • All tariff charges except the affordability subsidy charge: 12.74%; and
  • Affordability subsidy charge: 25.24%.

Eskom spokesperson Daphne Mokwena said the average increase applied to the key industrial and urban tariffs will be 13.29% due to the increase in the affordability subsidy charge.

“The affordability subsidy charge is raised as a subsidy to the Homelight 20A tariff and is determined by Nera. This charge exists due to historically lower Homelight 20A tariff increases and is paid by the non-municipal large industrial and urban tariffs.

“There are no tariff structural changes for 2024/25, however, Eskom is considering a tariff restructuring submission to Nera for implementation in 2025/26.” Mokwena said.

Price hike

Eskom had initially applied for a 32% tariff increase for the 2023/2024 financial year and an additional 22.52% in 2024/2025.

The ailing power utility was looking to recover R351 billion through the tariff hike in 2023/2024 and had planned to recover R381 billion the following financial year.

With 2023 taking the brunt of the hike absorbing an 18.65% increase, residential homeowner rates will be going up by 12.74% in April this year.

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