What is Eskom’s 36% Price Hike and When Does It Start? [2025 Updated]

Eskom, South Africa’s state-owned electricity provider, faces a critical financial situation. In response, the company has proposed a series of steep tariff hikes. The proposed increases aim to secure the utility’s economic stability by upgrading infrastructure and moving towards renewable energy sources. 

However, these price increases come at a time when South African households and businesses are already struggling with inflation. The National Energy Regulator of South Africa (NERSA) is crucial in approving the proposal. 

Keep reading to learn exactly why Eskom wants to exuberantly tariff electricity, how it will impact the community, and if the government can do anything to prevent it. Then, explore alternatives to reduce the dependency on grid electricity. 

Why Is Eskom Proposing a 36% Tariff Hike? 

The proposal includes a 36.15% increase for 2025, an 11.81% increase in 2026, and a 9.10% increase for 2027. Eskom states that this increase will reflect the cost of electricity generation, transmission, and distribution. It includes accounting for increased fuel prices, expanding their renewable energy sources, and fixing the ageing infrastructure. Globally, fuel prices have fluctuated, causing the cost of powering the company’s coal-fired power stations, which is the keystone of South Africa’s power supply. 

The upfront costs of transitioning to cleaner energy can be expensive. The electrical grid and power plants are in dire need of maintenance and upgrades after years of neglect. Eskom has long relied on load shedding and reduction to help reduce costs, but this is no longer enough. 

It’s no secret that Eskom has accumulated a mountain of debt over the years. The financial burden and increased operational costs have necessitated increased tariffs to maintain financial stability. While Eskom argues that these tariff increases are essential, they come at a time when South Africans are already facing economic pressures. 

How Will the Price Hike Impact South Africans?

The proposed price hike is expected to have far-reaching consequences for South African households and businesses:

• Households: Families are already experiencing an annual inflation of 4.4%, and the tariff will further increase household expenses. They must allocate more of the budget to electricity, leaving less for food, education, and healthcare. Families may turn to alternative energy sources as they start to feel the strain of increased electrical costs. The long-term savings of solar energy are worth it, but the upfront investment may be out of reach for some. 
• Businesses: The price hike presents a dual challenge: diminished consumer purchasing power and increased operational costs. Higher tariffs on essential electricity will eat profit margins, forcing many to scale back or consider layoffs. To stay afloat, some businesses may need to raise prices. Higher electricity tariffs may increase production costs across industries, further exacerbating inflation. 

Load-shedding practices have already contributed to the declining economy and community suffering, and raising electricity prices will not rectify the situation. While alternative energy sources offer a pathway to energy independence, some may find it inaccessible without financial help from the government. 

Can Government Interventions Reduce the Proposed Tariff?

The government can reject or modify Eskom’s tariff proposals through the National Energy Regulator of South Africa (NERSA). NERSA is responsible for reviewing Eskom’s applications and considering public input before deciding. 

NERSA evaluates Eskom’s proposals based on affordability, justification, and the broader impact on South African consumers.

NERSA can deny the increase or require adjustments if the proposal is deemed unaffordable or unsupported by sufficient justification. Alternatively, NERSA can modify the proposal to make it more equitable for consumers. Nersa must carefully weigh Eskom’s financial needs against the adverse effects on households and businesses already struggling with rising costs. 

Instead of directly influencing the tariff proposal, the government can address affordability issues in other ways. They could introduce subsidies for low-income households to help with the financial burden. These families could manage the increased costs with direct financial support from the government. 

The government could also enact policy adjustments to encourage private-sector businesses to introduce cost-efficient energy solutions. Tax breaks, grants, or subsidies for companies investing in renewable energy could accelerate the adoption of solar power. 

Finally, they could help restructure Eskom’s debt, relieving financial pressure and reducing the need for high tariffs. This could include partial debt forgiveness, renegotiation of repayment terms, or ensuring the utility remains open while minimising consumer impacts. 

What Alternatives Exist Amid Rising Electricity Costs?

Several alternatives exist for South Africans looking to mitigate the impact of rising electrical costs. Renewable energy sources, particularly solar power, allow residents to reduce their dependence on Eskom’s electricity while harnessing a clean, sustainable energy source.

EcoFlow Solar Generators represent a convenient, all-in-one solution for solar-generated electricity. These systems combine solar panels with portable power stations to ensure uninterrupted power supply, even during load shedding.

Solar panels harvest sunlight, a free and abundant resource, converting it into electrical energy through the photoelectric effect. The energy generated is used immediately or stored in a power station for later use. This stored energy is critical during peak power outages, such as those scheduled by Eskom. 

One standout product is the  EcoFlow DELTA 2 + 400W Solar Panel. This system offers an initial 1kWh of power, which can be expanded by adding an extra DELTA 2 battery for a total capacity of 2048Wh. This is enough battery capacity to power essential devices and 90% of household appliances, including TVs, lights, and Wi-Fi routers. 

The EcoFlow DELTA Pro + 400W Solar Panel provides 3.6kWh of capacity for households with larger energy needs. It integrates seamlessly into your home’s electrical system, offering whole-home backup. It ensures critical appliances like refrigerators and medical equipment remain operational, even when Eskom raises load shedding to level 6. 

Solar power reduces reliance on the grid, significantly lowering electricity bills. With a solar generator, you can cut your bill in half or more when choosing to power your home entirely with solar energy. It enables energy independence; you can take control of your energy supply instead of being burned by Eskom’s price hikes and power outages. 

Frequently Asked Questions

Final Thoughts

Eskom’s proposed tariff hikes for 2025, 2026, and 2027 are a direct result of ongoing financial challenges and rising operational costs. With a proposed tariff of 36.15%, the company plans to address its debt and invest in renewable energy to secure the country’s energy future. 

However, these costs come at a high price for consumers already experiencing inflation in other areas. The National Energy Regulator of South Africa will be crucial in determining the final tariff adjustments, considering public input. 

Turn to renewable energy sources like solar power to avoid relying solely on Eksom’s unreliable energy. Whether you want to reduce energy costs or back up your home, choose EcoFlow Portable Power Stations for reliable, steady backup power.