Eskom tariff adjustments effective from 1 April.

Eskom tariff adjustments effective from 1 April. Image: Pixabay

Eskom’s 2024/25 tariff adjustments approved by NERSA

Tariff adjustments approved for Eskom’s direct customers from 1 April and for municipal customers from 1 July.

Eskom tariff adjustments effective from 1 April.

Eskom tariff adjustments effective from 1 April. Image: Pixabay

On 10 October 2023, Eskom, South Africa’s state-owned electricity utility, made a significant move by submitting its Retail Tariff and Structural Adjustment Application (ERTSA) to the National Energy Regulator of South Africa (NERSA).

This application sought approval for the tariff rates and structural adjustments for the upcoming fiscal year. It spans from 1 April to 31 March.

Following due process, on 14 December 2023, NERSA announced its determination regarding the tariff increase for the 2024/25 period.

Eskom tariff adjustments effective from 1 April

The approved tariff adjustments are set to take effect from 1 April, for Eskom’s direct customers and from 1 July, for municipal customers.

Furthermore, the average increase across key industrial and urban tariffs is set at 13.29%. This rise is primarily attributed to the adjustment in the affordability subsidy charge, a component determined by NERSA.

2024/25 tariffs: local authorities 12.72%

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

The affordability subsidy charge is earmarked to subsidise the Homelight 20A tariff. Its aim is to offset historically lower tariff increases associated with it.

Notably, this charge is borne by non-municipal large industrial and urban tariff consumers. It contributes to the overall tariff adjustment for these sectors.

Tariff adjustments approved, but no structural changes in store for 2024/25 period

Despite the approved tariff adjustments, there are no structural changes planned for the 2024/25 period.

“There are no tariff structural changes for 2024/25,” said Eskom.

However, Eskom has signaled its intent to submit a tariff restructuring proposal to NERSA, slated for implementation in the subsequent fiscal year, 2025/26.