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You are here: Home / News / Business / Eskom to Implement NERSA-Approved Financial Year 2026 Tariffs: Removing Unintended Subsidies and Introducing Simplified and Transparent Tariffs, Effective 1 April 2025

Eskom to Implement NERSA-Approved Financial Year 2026 Tariffs: Removing Unintended Subsidies and Introducing Simplified and Transparent Tariffs, Effective 1 April 2025

19 March 2025 by Guest

Wednesday, 19 March 2025: Eskom welcomes the 11 March 2025 decision by the National Energy Regulator of South Africa (NERSA) to approve the Financial Year (FY) 2026 Eskom tariffs adjusted with the 2025/26 tariff increase and changes to the tariff structures. The tariffs for Eskom direct customers will increase by 12.74% effective on 1 April…

Wednesday, 19 March 2025: Eskom welcomes the 11 March 2025 decision by the National Energy Regulator of South Africa (NERSA) to approve the Financial Year (FY) 2026 Eskom tariffs adjusted with the 2025/26 tariff increase and changes to the tariff structures.

The tariffs for Eskom direct customers will increase by 12.74% effective on 1 April 2025 and tariffs for municipal bulk purchases will increase by 11.32% effective on 1 July 2025.

A well-defined tariff structure ensures equitable cost recovery, eliminates unintended cross-subsidies, and facilitates the responsible integration of alternative energy sources.

The updated tariffs will support the transformation of the electricity supply industry by aligning prices with NERSA-approved costs for generation, transmission (for the National Transmission Company South Africa (NTCSA)), and distribution services whilst promoting affordability and equity for all customers.

The NERSA approval enables Eskom to implement simpler tariffs for low-consumption households and municipal bulk purchases. The new tariffs will ensure that customers pay for costs they incur, thereby reinforcing a stronger user-pays principle in electricity pricing through the removal of unintended subsidies.

“Our residential customers will no longer have to pay a higher price for consumption above 350kWh and instead will pay the same cent per kilowatt-hour (c/kWh) for all their consumption. We encourage Eskom residential customers to purchase legal electricity tokens and for those in a need of increased affordability to register for Free Basic Electricity (FBE) and enjoy lower electricity prices provided by our government,” said Monde Bala, Eskom Group Executive for Distribution.

“With this NERSA approval, our customers that have registered their solar rooftop electricity generation, as required by law, will be able to export own-generated excess energy into the grid. Consequently, customers can reduce their electricity bill by benefiting from energy credits from exported energy once they are on a Homeflex tariff. Customers without rooftop electricity generation will no longer subsidise those with own generation as the cost of generation capacity, that recovers the backup costs, is now in a separate charge and is no longer included in the c/KWh proce,” continued Bala www.eskom.co.za/tariffs to utilise the tariff comparison tools.

The approved tariff changes do not apply to customers who are not directly supplied nor connected to the Eskom grid. Please visit https://www.eskom.co.za/ for more information on tariffs and installation of smart meters.

Courtesy of Eskom

About Eskom and Electricity – Power Plants: Eskom operates over 27 power stations.

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Category: BusinessTag: Electricity, Energy, Eskom

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  1. Apple Nola

    19 March 2025 at 8:06 pm

    41 South African beaches were awarded Blue Flags, an international indicator of high environmental standards for recreational beaches in 2013 (up from 27 in 2010).

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