Electricity bills expected to surge: Eskom proposes 43.55% increase by 2025

As Newcastillians continue to grapple with severe financial pressures, largely due to the relentless rise in the cost of living, a new concern looms on the horizon—could residents soon be paying up to 43.55% more for electricity by July 2025?

This troubling prospect arises from the state-owned power utility, Eskom, which officially applied to the National Energy Regulator of South Africa (NERSA) for a significant increase in electricity tariffs.

In a confidential draft document obtained by the media outlet Daily Maverick, Eskom is seeking this staggering price hike for the financial years spanning 2026 to 2028.

It is important to emphasise that this draft document represents just the initial step in Eskom’s application process with NERSA. The process to approve such a price adjustment is extensive, involving public comments and hearings, all of which will ultimately influence the average cost of electricity for consumers.

The draft document submitted to NERSA outlines Eskom’s request for an increase in the standard tariffs charged to non-municipal customers—36.15% for the 2026 financial year, 11.81% in 2027, and a further 9.10% in 2028. If NERSA approves, these hikes will come into effect on 1 July 2025. It’s crucial to note that these increases directly impact those customers who are billed and supplied by Eskom.

For communities that rely on electricity from their local municipalities, the potential price hikes could be even more severe. The confidential document, viewed by Daily Maverick, indicates that Eskom is considering a 43.55% increase in 2026, followed by 3.36% in 2027, and 11.07% in 2028.

With the looming threat of even higher electricity tariffs, Democratic Alliance’s Willie Aucamp voiced the DA’s firm opposition. He revealed that the DA caucus of local government Mayors has resolved to collectively resist the proposed 40% NERSA-approved electricity tariff increase scheduled for 1 April 2025.

Aucamp further noted that the DA Mayors have already initiated this opposition by submitting written objections and foundational arguments to NERSA. In his statement, he warned, “While double-digit tariff increases over the past few years forced many to choose between putting food on the table or keeping the lights on, this latest unacceptable increase will make food poverty levels in the country much worse.”

He additionally explained that such unprecedented tariff increases might push electricity revenue to a dangerous threshold. If consumers, feeling overcharged, begin to cut back on electricity usage, Eskom could end up generating less revenue than before. “This would be a devastating outcome for Local Governments, which rely on electricity tariff income to provide various services,” Aucamp added.

He also highlighted that the DA has called for a debate of national importance in Parliament to address the escalating cost of electricity, and is even exploring possible legal avenues to challenge this 40% plus tariff hike.

Aucamp stressed that the DA would not stand idly by and is committed to doing everything within its power to prevent this increase. “We call on all South Africans to join us as there is now a real risk that South African households could become trapped in a permanent high-cost-of-living environment due to sky-high electricity prices,” Aucamp concluded.

As the DA prepares to fight against this proposed price hike, NERSA has sought to clarify recent media reports concerning Eskom’s revenue application for the 2025/2026 financial year.

The regulatory authority stated, “It is public knowledge that Eskom, in the spirit of cooperative governance, has submitted a draft revenue application to NERSA for guidance on the regulatory process. It is important to clarify that NERSA has not yet received Eskom’s final application for consideration. Once the final application has been submitted, NERSA will consider the application and diligently adhere to NERSA’s regulatory processes.”

Furthermore, NERSA assured the public that these processes include publishing the application on its website, conducting a comprehensive public participation process with stakeholders and public comments, and holding public hearings. NERSA stated that it remains committed to transparency and serving the best interests of all stakeholders.

As Newcastillians and their fellow South Africans anxiously await the final decision on how much more they will be expected to pay for electricity, we invite you to share your thoughts in the comments section below.