Eskom announced a tariff increase approved by NERSA, set to affect electricity bills from April 2024.
Eskom tariff increase for 2024: Here’s everything you must know
South Africa’s primary electricity supplier, has confirmed an adjustment in electricity tariffs following approval from the National Energy Regulator of South Africa (NERSA).
This decision comes after Eskom’s application in October 2023 for tariff adjustments for the financial year 2024/25.
The approved adjustments will see changes in electricity costs for both Eskom’s direct customers and local authorities go into effect from Monday, 1 April 2024, with varied increases across different customer categories.
Detailed breakdown of tariff changes
For Direct Customers
Starting 1 April 2024, Eskom’s direct customers will experience an average increase of 12.74% in their electricity tariffs.
This excludes the affordability subsidy charge, which will see a significant jump of 25.24%.
The rise in the affordability subsidy charge specifically targets the Homelight 20A tariff, benefiting from a subsidy aimed at making electricity more affordable for lower-income households.
Impact on Local Authorities
Local authorities will not be spared, with tariffs set to increase by 12.72% starting from 1 July 2024. This adjustment will indirectly impact consumers through their municipal electricity bills.
Industrial and Urban Sectors
The key industrial and urban sectors will bear the brunt of a 13.29% average increase, primarily due to the raised affordability subsidy charge.
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Eskom: ‘No structural changes to the tariff system – yet’
The power utility confirmed that for the 2024/25 period, there will be no structural changes to the tariff system.
However, Eskom is contemplating a tariff restructuring for the following financial year, which could introduce more significant adjustments.
This means that for the financial year 2024/25, the way electricity prices are organized and charged by Eskom will stay the same as before.
There won’t be any changes to the structure, like how different types of customers are categorized or how different types of electricity usage are priced.
However, Eskom is thinking about changing this system for the next year, 2025/26, which could mean adjustments in how electricity tariffs are set up and applied.