Eskom’s Tariff Hike, What the Impact will be

Eskom’s recent tariff adjustments are set to significantly impact residential customers, with monthly bills expected to rise by R168 to R792.

These changes, effective April 1, 2024, encompass a minimum 12.74% increase across all Eskom Direct tariffs. Notably, the affordability subsidy charge for Eskom Direct is escalating by 25.24%, resulting in a total 13.29% hike for key industrial and urban consumers.

Moreover, Eskom is revising tariffs for electricity sold to municipalities, with a 12.72% rise, albeit effective from June 1, 2024. It’s worth noting that municipalities may opt for additional increases based on their operational costs, potentially leading to higher tariffs than Eskom’s stipulated hike. Thus, affected customers are advised to await notifications from their respective municipalities regarding new tariff structures.

To gauge the impact on their electricity expenses, Eskom Direct customers can utilize Eskom’s tariff calculator tools available on its Tariffs and Charges webpage. These tools, equipped with prepopulated tariff data and equations, facilitate a swift calculation of revised monthly bills based on individual consumption patterns.

For instance, under the Homepower 4 tariff commonly used by single-phase 16kVA (80A) households, the energy charge for the initial 600kWh has risen from approximately R2.50 to R2.82. Consumption beyond 600kWh now incurs a charge of R4.54, up from R4.03. Additionally, the fixed network capacity charge for Homepower 4 has surged from R6.56 to R7.39 per day, translating to a monthly increase from R196.80 to R221.70.

Considering these adjustments in energy and capacity charges, an average 900kWh user on Homepower 4 can expect a bill hike of R370.29. Conversely, a more conservative 450kWh user would face an increase of around R168.50. The following table illustrates how Eskom’s tariff revisions will impact Homepower users across various consumption levels starting April 2024: